I have a client that has a non-spousal inherited IRA that I manage. It is currently invested at TDAmeritrade currently in a money market account because she has absolutely NO Risk Tolerance. Can we do a Trustee to Trustee transfer into a new Inherited IRA using a Fixed Annuity?
Should be OK then from RMD standpoint, and RMDs on inherited IRAs can be aggregated when both are inherited from the same original decedent. You would just have to be sure the funds were moved by direct non reportable transfer and the insurance company understood this is an inherited IRA. They probably do very few of these for inherited IRAs.
Permalink Submitted by Alan - IRA critic on Sun, 2020-04-05 19:01
It could be done if the insurance company would accept it, but how would the annual inherited IRA RMDs be satisfied without surrender charges?
Permalink Submitted by Vernon Childress on Sun, 2020-04-05 20:17
Half of the Inherited IRA will be in AUM & half in the Annuity. We are liquidating the AUM side in 5yrs and the annuity in 8yrs using penalty free withdrawals. Our annual distributions on both the AUM and Annuity are well above the RMD amounts.