Inherited IRA Transfer
Hello-
Have not worked with many inherited IRAs. Trying to transfer one from one custodian to another. Non spouse beneficiary.
- At sending firm it is titled: Deceased name c/o beneficiary name and listed as a Traditional IRA on statement. It surprised me to not specifically see “Inherited” in titling. Is that something to question?
- Can you split an Inherited IRA into two? Only transfer part of the account to the new custodian?
- Do I have to make sure the deceased took their year of death RMD prior to transferring to new custodian?
- This is a non spouse beneficiary. My understanding is 60 day rollovers are not allowed. If there is an accidental distribution to the one the beneficiary, are there any options to avoid having to report it all as income in that year?
Thank you!
Permalink Submitted by Alan - IRA critic on Wed, 2024-09-18 16:24
1)No, its still a traditional IRA. but is titled correctly.
2) Yes, it can be split. The inherited IRA can then be withdrawn in any combination between the two inherited accounts, albeit with the potential to result in RMD confusion.
3) No, if the deceased year of death RMD was not complete it can be completed before or after the transfer.
4) Correct, any distribution is irrevocable, taxable, and cannot be rolled over. Therefore, extra care should be taken to make sure a direct transfer is done, not a distribution.