PLR 202125007: IRS Written Determination on Trust May Not Transfer IRA’s Assets to IRA Account (June 25, 2021)

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.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s