Tax and Money Tip this Week:
Inheriting an IRA: Titling the IRA Account Improperly
April 20, 2016 | No. 281
Nonspouse beneficiaries cannot roll an inherited IRA into their own IRA. Instead, a separate account must be set up with a title that includes the decedent’s name and the fact that the account is for a beneficiary. For example, the account could be retitled to “John Doe (deceased April 14, 2014) IRA for the benefit of Jane Doe.” If the account is split among beneficiaries, each new IRA must be properly retitled. And once the IRA is retitled, don’t forget to name successor beneficiaries.
Source: Kiplinger’s Retirement Report
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Mark Vitek, CPA/PFS, CFP®
…until next week.