Inherited IRA

Submitted by steve jackson on Thu, 2020-10-08 17:43

Inherited IRAs from mother and accidently requested one check and cashed it a couple of weeks ago instead of depositing in beneficiary IRA . Can I redeposit the funds back into Inherited IRA account established for other ones that were deposited correctly?
Thanks



Submitted by David Mertz on Thu, 2020-10-08 18:21

  • The law does not permit a non-spouse beneficiary to roll over a distribution from an inherited IRA.
  • Cashing the check is generally not the issue.  The issue is that if a non-spouse beneficiary receives a check from an inherited IRA that is made payable to the beneficiary rather than having been made payable to an inherited IRA for the benefit of the non-spouse beneficiary, the beneficiary has received a distribution that is not eligible for rollover and it is not permitted to be deposited into an inherited IRA.
  • If the check was actually properly made payable to an inherited IRA for your benefit, constituting a non-reportable trustee-to-trustee transfer, you should not have been able to cash the check since you were not the payee.  However, to avoid mishaps such a transfer is often made directly between the custodians without the beneficiary handling a check.

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