Beneficiary IRA rolled over to 401(k) rollover

IIRC, you can't transfer funds in a IRA to a 401(k). However, you can transfer your spouse's IRA to your IRA.

-- Ron

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

send you a check from an IRA if you're intending to move it, because of the risk that the transaction might be considered taxable. Instead, transfer directly from one firm to the other.

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

See

Dave

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

Afraid you are behind the code changes. It used to be you needed to keep a 401(k) rollover to an IRA in a specially titled 'rollover' account if you had any intention of putting it into a future 401(k). Now, employer permitting, I am allowed to transfer any pre-tax IRA money I have into my 401(k). Why would one do this? A) You can retire from the company at 55 and take withdrawals without being subject to the 59-1/2 age rule or worrying about Sec(72t) math. B) Having saved $50K in non-deductable IRA deposits, this is the chance to convert it to Roth, and not be subject to taxes. If there's no pre-tax IRA money to tax, the conversion is free. Wahoo! C) The 401(k) has some low cost fund, or otherwise closed fund that can't be gotten into otherwise.

But I don't think OP asked that. He said he has a "work related 401(k) rollover brokerage account." That's ambiguous enough to me. Sounds like he already rolled the 401(k) to an IRA, but just wants to combine accounts. It also sounds like the deceased spouse account was retitled as I warn people they must title a non-spousal inherited IRA. There may have been a valid reason to do so, but that titling prevent the accounts from getting combined, I believe. It also impacts the way RMDs are calculated, I also believe.

You are right that one can transfer the spouses IRA into their name and it's theirs, as if it always was. I just don't know if the current scenario is undoable. Joe

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

There is no danger of the transaction being taxable if you complete the rollover within 60 days. The old custodian will send you a form next January saying that you took a distribution. You enter that on your tax return, e.g., on line 15a of the the Form 1040. Right next to that, on line 15b, you report the taxable portion of that distribution. If you completed the rollover within 60 days, the taxable portion would be $0. Line 15b then is one of the lines that enters into the adjusted gross income. Line 15a is not used anywhere else that I am aware of.

I do think that a trustee-to-trustee transfer is the easiest way to go, though.

Dave

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

Sometimes you don't have a choice. My 401(k) won't send a rollover to another institution, but insists on sending a check to the address of record. They cite security reasons.

An important thing to do if you do receive a check is to make sure the sending custodian processes it as a rollover. That way taxes won't be withheld. The check should be made out the receiving custodian, with for-benefit-of designation in your name.

Brian

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

We were talking about IRA to IRA rollovers, not a 401(k) to IRA rollover. Do you know of an IRA that refuses to do a trustee-to- trustee transfer?

Dave

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

But if the check is made to you, the old trustee is required to withhold 20% for taxes. That means you have to come up with the cash to cover that 20% to deposit into the new account. One of Congress's nicer FY rules.

The check must be made out as "for the benefit of" .

-- Doug

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

We are talking about IRA to IRA transfers. This withholding rule you mention is for distributions to you from a 401(k), not distributions to you from an IRA. There is no withholding rule for distributions from an IRA. You can have your old IRA custodian send you a check, made out to you if you wish, for the entire balance of your account. You can deposit that check into your checking account, and then, before 60 days have passed, send a new check to your new IRA custodian to fund a new account or add to an old one.

I'm finding so much misinformation in this thread. It is true that the rules are convoluted, but that just means that you have to be careful to understand them.

Dave

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

You're right. Sorry.

-- Doug

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

I believe we are lest with the question of whether the OP can mingle an IRA he has already titled as a beneficiary IRA (from his spouse, although his post appears to say he did not opt to simply change the account or transfer it into his own name as he is permitted) back to the regular 'owned' status after the fact. First I've run into this, and can't find a reference.

Joe

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

One of the good things about this newsgroup is that while each of us make mistakes occasionally, there is enough expertise hereabouts that ultimately all questions get answered.

Heaven knows I've made my share of gaffs, and in every instance I've noticed that there was no end to the number of posters who were more than willing to point out my ignorance.

-HW "Skip" Weldon Columbia, SC

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.