Duplicate RMD from an Inherited IRA
Trustee mistakenly sent a duplicate RMD from an inherited (non-spouse, pre-2019) IRA. They won’t correct that mistake because of the complications of putting money, which did not come from the deceased, into an inherited IRA.
Can that 2nd distribution be rolled into a traditional IRA within 60 days?
Permalink Submitted by Alan - IRA critic on Sat, 2022-01-15 20:35
The IRA custodian should correct their error if they were solely responsible for it, precisely because the beneficiary cannot correct the error through a rollover. Returning the erroneous distribution to the inherited IRA is not being done to benefit the beneficiary, it would be justified to correct custodian error and there would be no complications. Custodian should just document the file in the unlikely event of an IRS or internal audit revealing the error and resolution of it. Further, if this error was made last year, the 1099R should only report the one valid distribution.