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Re: Inherited Annuities

Non-spousal beneficiaries of IRAs have been able to roll

> their inherited IRAs into their own accounts for several > years.

What do you mean by "their own accounts"? We just had to go through this this year, and every bit of information we were able to find, from IRS Publication 590, to documents from the brokers involved, all very clearly and explicitly stated that the named non-spouse beneficiary of an IRA cannot move or roll over the funds into their own IRA. The beneficiary either has to leave it in the financial institution that the decedent's IRA was at, or else open a special Inherited IRA account at the custodian of the beneficiary's choice and fund that Inherited IRA via a trustee-to-trustee transfer.

-- Rich

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Rich
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Perhaps OP is thinking of a fairly recent change allowing nonspousal beneficiaies who begin their distributions by the end of the year following death, to scrap the 5 year rule and use their life expectancies for the first year, and add one year to the denominator each year, to determine their distributions.

Go you one better. Say the traditional IRAs they have and also the inherited IRAs have nondeductioble amounts in them. That could require multiple 8606s and possibly prevent efiling.

Their own traditional IRAs have their own distinct 8606 and inherited IRAs with basis have their own, and different, 8606s.

-- ArtKamlet at a o l dot c o m Columbus OH K2PZH

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Arthur Kamlet

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