Inherited IRA Direct Transfer

When making a direct transfer from a deceased’s owner IRA to a non-spouse beneficiary IRA, do the proceeds have to be transferred directly (electronically) from one financial institution to another, or can the current institution mail the check to the beneficiary, still have it be payable to the new institution FBO the IRA beneficiary, and then have the beneficiary forward the check to the new institution? Thank you!!!



While the second method also qualifies as a direct transfer, it may carry a slightly higher risk of the custodian issuing a troublesome 1099R in error. If doing the transfer the second way, retain a copy of the check until the following February, just in case.

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