non spouse rollover mislabeled

Client inherited his sisters 401(k) and told his bank that it was his deceased sisters qualified plan he was rolling over into his IRA in his name and that’s what the bank did, rolled it over to his name ONLY. They did not title it as required “Sister, deceased 3/4/2014, IRA FBO of Brother, Beneficiary” Can anything be done or is there any relief from going back to 2014 and amending his tax return picking up the entire rollover as a 2014 distribution? He did take a 2016 distribution which would cover that years RMD. Did not take a 2015 RMD.



If this IRA had a balance before the inherited plan was rolled over, he is probably out of luck particularly if this happened 3 years ago. If this went into a new IRA, he might be able to put together the evidence and have the bank re title it, and the only chance of that is if the bank was responsible for the error.

Thank You Sir

Add new comment

Log in or register to post comments