Accidental Inherited IRA withdrawal
I have a client who was attempting to an indirect rollover and withdrew his funds from his inherited IRA. This is, of course, not allowed for inherited IRAs. How can we reverse this, if at all? Client’s old provider seems unhelpful. Who contacts the IRS? Any helpful details from anyone who was in a similar experience would be much appreciated.
Permalink Submitted by Alan - IRA critic on Thu, 2014-06-12 18:45
There is no fix for this one under current law, although it is one of the most costly IRA mistakes there is. The IRS has been very consistent in denying exceptions to the taxable distribution.
Permalink Submitted by abura98 on Thu, 2014-06-12 21:10
Thank you for your quick answer!
Permalink Submitted by Bruce Steiner on Fri, 2014-06-13 01:28
The Administration has proposed to allow a 60-day rollover for inherited IRAs, but this proposal has not been enacted. The IRS has no authority to grant an exception.