Rollover from Inherited IRA

Submitted by Howard Hook on Mon, 2022-03-14 19:20

Taxpayer, age 66 dies with an IRA held at a bank. IRA names her daughter as sole beneficiary
Bank indicates they will not re-register the IRA as inherited or setup an inherited IRA for daughter – only will cut check to the daughter.

If they do that, can the daughter roll the check amount into a new inherited IRA (same deceased owner) within 60 days?

I assume no mandatory withholding requirement for an IRA distribution so if it can be done she would indicate to the bank she wants 0 withheld.

Thanks
Howard



Submitted by Alan - IRA critic on Mon, 2022-03-14 19:46

There is no rollover allowed for a non spouse beneficiary, so any distribution to daughter would be fully taxable. Daughter should check with the bank if they will honor a transfer request from another inherited IRA custodian and verify that what she was told is correct. If so, why would any IRA owner with a non spouse beneficiary use this bank? 

Submitted by Howard Hook on Mon, 2022-03-14 20:36

Thanks Alan.Daugher receiving conflicting information. Was first told to submit a transfer form and then was told by someone else at the bank that they will only cut check to the daughter.Mom died suddenly before having opportunity to roll IRA out of bank.Howard 

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