Consolidating inherited iras

Submit the trustee-to-trustee transfer request and begin taking required distributions from the beneficiary IRA.

You must take your first distribution in the year after the decedent died.

Please do not hesitate to sit down with a tax professional who can help you sort out these decisions with respect to your particular tax situation.

Thank you for the great question and all the best to you as you move forward.

Spendthrift heirs take heed: Inherited IRAs are not retirement accounts.

With the 60-day rollover, or once-per-year transfer, a check is cut directly to the account owner with the understanding that the funds must be back in an IRA within 60 days or the funds will become subject to taxes and penalties.

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So, if you did one today, you couldn’t do another one until next July 23 or whatever today is,” says IRA expert Ed Slott, CPA, president of Ed Slott and Co., and author of “The Retirement Savings Time Bomb …

and How to Defuse It.” In November 2014, the IRS published a notice clarifying how the new rule works for those who have multiple IRAs.

To ensure compliance with requirements imposed by the IRS, we inform you that any U. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

Taxpayers should seek professional advice based on their particular circumstances.

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