Author Topic: Can I roll over distributions from an inherited IRA?  (Read 1160 times)

Argyle

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Can I roll over distributions from an inherited IRA?
« on: February 21, 2015, 06:12:11 PM »
Anyone know if I can roll over distributions from an inherited IRA?  I have searched the rules but can't find anything that addresses this specifically.

seattlecyclone

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Re: Can I roll over distributions from an inherited IRA?
« Reply #1 on: February 21, 2015, 06:20:30 PM »
I think you might be able to transfer the balance to an inherited IRA with a different provider, but there's no rolling it over to your own IRA. You have to take out at least the RMDs that are set based on your age at the time you inherited the IRA.

Frankies Girl

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Re: Can I roll over distributions from an inherited IRA?
« Reply #2 on: February 21, 2015, 06:34:44 PM »
If you're talking about the minimum required distributions to an IRA, you aren't allowed to do a rollover. You have to take it out and pay the taxes owed as a distribution. Once the money is out, tho, you can put it wherever you want.

I wanted to start doing conversions on my inherited IRA into my Roth once I quit, so as to reduce the inherited IRA, but that's not allowed unfortunately. (Another Reader clued me in on the restriction)

Reference on the conversion rules:  http://fairmark.com/retirement/roth-accounts/roth-conversions/conversion-eligibility/  Only spouses can treat the inherited IRA as their own and convert it to a Roth.

You can take more money out as an extra distribution(s) without any penalty, but you would still be required to pay the taxes on it - no rolling over or converting any portion.

« Last Edit: February 21, 2015, 06:44:19 PM by Frankies Girl »