Beneficiary SIMPLE IRA
A beneficiary inherited a SIMPLE IRA that has been open for more than 2 years.
May the beneficiary set up a Beneficiary Traditional IRA and have the inherited SIMPLE IRA assets transferred (not sold and repurchased) into it?
Or must he establish a Beneficiary SIMPLE IRA?
It seems that he would have the right to establish a Beneficiary Traditional IRA but it does not explicitly say that anywhere that I can find.
Thank you!
Permalink Submitted by Alan - IRA critic on Wed, 2020-11-25 14:42
There is no reason that a direct trustee transfer to an inherited TIRA could not be done. There is no purpose in requiring the beneficiary to continue a SIMPLE IRA, although you are correct that the IRS has not directly addressed this question. A direct transfer will not produce a 1099R, but of course the respective IRA custodians would have to cooperate.