Nonspouse IRA beneficiaries

Description

Abstract: It is increasingly common for individuals to become entitled to some or all of the balance in a deceased account owner’s traditional IRA or Roth IRA by virtue of being designated as an account beneficiary. But, if the beneficiary is not the deceased’s spouse, it is not possible for them to receive their share of the inherited IRA balance and then roll it over tax-free into their own IRA before the familiar 60-day deadline for rollovers has passed. But this article explains that there are ways to finesse the “no-rollover-allowed rule” so as to take control of a share of an inherited IRA without adverse tax consequences.