inherited IRA rollover
A daughter who is 49 inherits an IRA from her deceased father. The IRA is rolled over to an IRA in the daughter’s name. She does have to take distributions, correct? If she has to take distributions, what type? She can not just let the assets set or roll them into an IRA. Thank you.
Lanny Ross
Permalink Submitted by Clyde Wolf on Tue, 2010-07-06 19:49
The daughter needs to keep the inherited IRA in a Beneficiary form, the decedent’s name must remain on the IRA with a statement similiar to, ” for the benefit of daughter’s name. Doing anything else will make the total IRA balance taxable now.
If father was in the RMD age range, and died in 2010, Daughter needs to make sure the decedent has taken their RMD for 2010. If father died in 2009, no RMD was required for the year of death.
With the Beneficiary IRA, daughter would take RMDs based on her lifetime. Her first RMD must be taken by the end of the year after the year of father’s death.
Permalink Submitted by Alan Spross on Wed, 2010-07-07 19:37
An inherited IRA that is not properly titled showing both the decedent and the beneficial interests can have the registration corrected and avoid a taxable event.
See the following:
http://www.retirementdictionary.com/faqs/decedentsnameinheritedira