Bene IRA
Client received check for 10k from his father’s IRA (father passed away 9/7/10), father was older than 70 1/2. Client doesn’t want to pay taxes on the full 10k and wanted to know if the rules apply to bene IRA’s as they do for Trad IRA’s. To avoid paying taxes, can they deposit these funds into a bene IRA w/in 60 days and then next year start receiving the required Bene RMD’s.
Permalink Submitted by mk foss on Mon, 2010-10-11 17:36
Once he has the check he can’t use it to establish a beneficiary IRA. If he could get the custodian to take back the check and transfer the funds to a newly opened beneficiary IRA, he should be able to stretch out the IRA.
Is he the only beneficiary of the IRA? Could the payment possibly be the father’s 2010 RMD instead of the entire balance?