beneficial IRA contribution
I have a client who had one of his deceased father’s IRAs distributed to him by check. He is still within his 60 day window. He wants to write a check for me to open up a beneficial IRA for this check and for transfers we will be making from the Beneficial IRAs that have been established at the other places his father had IRAs. I called my broker dealer today about filling out their Contribution Authorization form since they only show options for either IRA Participant Contribution or Rollover Cash. I had understood that contributions into a beneficial IRA were considered transfers and not rollovers. I need to know how to complete this form for the broker dealer correctly. Thanks.
Permalink Submitted by mk foss on Thu, 2011-02-10 18:26
An IRA distribution by check must be made payable to the custodian of the beneficiary IRA. If the check is made out to him, it’s a big problem. There is no 60 day window for IRA beneficiaries.
The term “transfer” contemplates an asset transfer from the decedent’s IRA to the beneficiary IRA of the heir. The only way that a check would be considered a transfer is if the beneficiary could not negotiate it.