Inherited IRA – 60 day Rollover
In the event an Inherited IRA account holder intends to transfer their account from one custodian to another and they accidentally requests a distribution (receiving a check payable to the account owner)… can the check be deposited into the new custodian, the account holder’s new Inherited IRA, within 60 days to avoid taking the taxable distribution and thus effectively perform an Inherited IRA to Inherited IRA transfer?
Thank you,
Permalink Submitted by Alan - IRA critic on Mon, 2018-04-02 22:43
No. If a non spouse beneficiary receives a check, it’s a distribution and not eligible for rollover. The only possibility for relief would exist if the check was totally the error of the custodian, that nothing the beneficiary did could logically be construed as a distribution request. If that was the case, the check should be returned to the custodian with a request to void it. The IRS has no authority to grant any relief in this situation. Completing a form and checking the distribution box is the usual cause for this disaster and is probably the most common and costly error made by IRA beneficiaries.