IRA Inherited Page by Don Fitch CPA (877)CPA-Help

wwwPaylesstaxcom
Toll Free (877)CPA-Help or (877)272-4357

Don Fitch CPA's professional services include Guaranteed results with the IRS, tax returns for ALL 50 STATES, Financial and IRS Audits, Financial Reviews, Compilations, IRS Discovery's, Natural Disaster Relief, Lender Letters, and CPA Employment Verification

IRA Inherited
Page

Chat Live with a CPA

Free Internet Contact Form

Free Consultation

Free Tax Forms from 1980 to Present

Free Tax Chat

Free Video Messenger Chat

Actual IRS Wage Levy Releases

Actual IRS Offers in Compromise

Actual Testimonials

Actual Lien Releases

Don Fitch CPA's Guaranteed IRS Wage Levy Release Program

Haven't Filed in Years! What should I Do?

What to Look for in a CPA

Taxes and Bankruptcy

We prepare Federal and State Tax Returns for ALL 50 States!

(Individual)

(Amended)

(Partnership)

(Trust)

(Corporation)

(Sub S-Corporation)

(Estate)

(Gift Tax)

(Federal Unemployment Taxes)

(Payroll Taxes)

(Non Profit)

(Information)

Don Fitch CPA's Resume

Webmaster's Resume

Don Fitch CPA's Employment Opportunities

Directions to Don Fitch CPA

IRA Inherited
LIMITATIONS ON ROLLOVERS FROM INHERITED IRAS

If a taxpayer inherited a traditional IRA from his spouse, he can
generally can roll it over into a traditional IRA established for in his
name, or he can choose to treat the inherited IRA his own. If the taxpayer
inherited a traditional IRA from someone other than his spouse, he cannot
roll it over or allow it to receive a rollover contribution; he must
withdraw the IRA assets within a certain period. Code Section
408(d)(3)(C).

Generally, if a decedent's IRA proceeds pass through a third party, e.g.,
a trust, and then the proceeds are distributed to the decedent's surviving
spouse, the spouse will be treated as acquiring them from the third party
and not from the decedent. Thus, generally, the surviving spouse will not
be eligible to roll over the IRA proceeds into her own IRA. However, the
IRS concluded in PLR 199925033 that a non-pro rata partition of community
property of a decedent and his surviving spouse with the decedent's IRA
being allocated to the surviving spouse's trust is not a sale, exchange,
or other transfer of the IRA and that since the surviving spouse, having
become the sole trustee at the decedent's death, had at all times
exclusive control over the assets of the IRA, the IRA did not constitute
an inherited IRA within the meaning of Code Section 408(d)(3)(C).
Consequently, the surviving spouse was not required to include the value
of the IRA proceeds in her income and could transfer those proceeds into
a rollover IRA within 60 days of their distribution.