Reversing a IRA distribution
An IRA participant passed with no bene. The attorney working on estate filled paperwork to take a distribution and place into estate account. Can this distribution be reversed, changed to an estate IRA and rolled to an inherited IRA for beneficiaries per the will?
Permalink Submitted by Jose Morales on Thu, 2017-08-31 19:30
The process for returning funds that have been withdrawn is by rollover, however there is no rollover option for funds withdrawn after the death of an IRA owner unless that withdrawal was completed by the spouse of the IRA owner. The IRA custodian would either have to knowingly break the rules to make the distribution appear to have never happened or be ignorant of the fact that it’s not allowed. Ultimately the decision will be the IRA Custodians to make, however you won’t have anything to back the request from a legal standpoint. You could always apply for a private letter ruling, but if no mistake was made on the part of the IRA custodian I don’t see how the ruling would be favorable.