Inherited IRA
Can an beneficiary (assuming they are a qualified individual) of an inherited IRA take a coronavirus related distribution (CRD)?
Under the normal (pre-SECURE) rules a non spouse can take a distribution for a little (as long as their annual RMD is met) or as much as they feel comfortable and post SECURE the same (w/o regard to an annual RMD)
My question is regarding the favorable tax treatment offered by CRDs?
Would non-spouse be eligible to split the income (evenly) over 3 years and roll the money back into the inherited account?
Of course, waiver of 10% penalty is mute as the penalty would not apply under to any distribution.
Thank you
I haven’t see anything saying a non-spouse is inelible leading me think there can.
Permalink Submitted by Alan - IRA critic on Tue, 2020-05-26 14:08
The text of Sec 2202 of the CARES Act does not exclude inherited IRAs except that re payment would not be allowed since the text requires re payment be limited by what Sec 408(d)(3) allows as rollover contributions. That section excludes such rollovers from inherited IRAs from a non spouse. The distribution taxes can be paid over 3 years however.