Some Things to Remember If You Inherit a Non Spouse Ira

If you are named the beneficiary of a non-spouse IRA, to avoid a taxable event, make sure you request a trustee-to-trustee transfer. Your inherited IRA must be directly transferred from one account to another or from one IRA custodian to another. There is no 60 day tax free window to put the money back into the IRA account. Any check you receive will be taxed as ordinary income. This rule applies even if you redeposit the check into the inherited IRA from whence it came. Also remember not to commingle any IRA's you inherit. If you inherit different types of IRAs, such as Roth IRA or a SEP, you are not permitted to combine them into a single inherited IRA. Always consult a tax professional before you make any final decisions.