Beneficiary of an IRA Rollover and Solo 401k
I have a client that is listed as the beneficiary on his father’s IRA Rollover and Solo 401k. The father has passed away and we are in the middle of the estate settlement process. He will be taking the distributions via Inherited IRAs. Question: Can the 2 Inherited IRAs(from decedent’s IRA Rollover and Solo 401k) be commingled? They would use the same factor but is there an IRS ruling stating these need to remain separate(since one is a qualified plan and the other is an IRA)?
Permalink Submitted by Alan - IRA critic on Tue, 2019-06-11 15:53
There is no reason they cannot be combined into a single inherited IRA unless client wants to convert the solo K to an inherited Roth IRA. To combine, the RMD divisors must be the same and that would not be the case if either plan had already been inherited or if either plan had other beneficiaries as well and separate accounts were not created by the deadline.