Inherited IRA
Can a non-spouse beneficiary use the 60 day indirect rollover rule to transfer funds from one beneficial IRA at one custodian to a beneficial IRA at another custodian?
Can a non-spouse beneficiary use the 60 day indirect rollover rule to transfer funds from one beneficial IRA at one custodian to a beneficial IRA at another custodian?
Permalink Submitted by David Mertz on Wed, 2023-06-21 15:48
No, a rollover of an IRA by a non-spouse beneficiary is not permitted. An IRA inherited by a non-spouse beneficiary is permitted to be moved only by non-reportable trustee-to-trustee transfer, which is neither a distribution nor a rollover.
Permalink Submitted by Alan - IRA critic on Wed, 2023-06-21 18:40
There has been talk about Congress changing these rules to allow non spouse rollovers, but there is no pending legislation to do that, and since Secure 2.0 did not include such provisions, there is probably at least another 3 years before such a provision could even make it into a bill.