The IRS ruled that the representative of a decedent’s trust was not allowed to transfer an Individual Retirement Account’s (IRA’s) assets currently held in the non-IRA account into an inherited IRA for the benefit of the trust. The assets in an inherited IRA for the benefit of a trust are not permitted to be rolled over under Code Sec. 408(d)(3). The only permitted method of transferring assets from an inherited IRA to another inherited IRA is via a trustee-to-trustee transfer, which requires a direct transfer from one IRA to another IRA.
See PLR 202125007 by clicking here.
See Code Sec. 408(d)(3) by clicking here.
Posted by Jessica Ji, Associate Editor, Wealth Strategies Journal.
Wealth Strategies Journal 