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    Jbert's Avatar
    Jbert Posts: 56, Reputation: 1
    Junior Member
    		  
    #1

    Oct 8, 2010, 07:18 AM
    Ira inheritance
    As I understand it, a non-spousal beneficiary has only a few options. We want to transfer 2 IRA's trustee-to-trustee, but the original trustee has the paperwork filled out to cut a check and mail it to me. I do not think this is good as it may be taxed for the whole amount. I do know the 60 day reinvestment does not apply to this situation.


    Thanks


    JIM
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Oct 8, 2010, 08:31 AM

    You are right - it is a BAD idea for the existing IRA trustee to send you a check - you will be taxed on the full amount. Instead, you should set up an inherited IRA account and have the trustees do a direct transfer. I don't undersand why the existing trustee is reluctant to support this - just because they have "paperwork" already filled out is no excuse. However, if they are obstinate, another option may be to set up the inherited IRA account with the existing trustee - then some time later you can roll it to a new trustee if you like.
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