Inherited IRA 60-day rollover rule does not exist. How to correct when someone was told the wrong advice?
I person got fed up with her advisor and cashed in her inherited IRA. She was told she had 60 days to open a new Inherited IRA with a new advisor. She was told wrong, what does she do get it back into inherited IRA status?
Permalink Submitted by Alan - IRA critic on Tue, 2019-07-16 00:32
There is no fix for this critical error. If she has proof that her tax preparer, accountant, or staff at the inherited IRA custodian gave her this disastrous advice, she should have recourse against them. Whether she presses this issue or not would be heavily influenced by the balance of this distribution. She has lost the many years left of tax deferral and will be taxed at a higher rate if this distribution is sizeable. That all amounts to a considerable cost.