Trustee to trustee transfer

I have a client that has inherited about 3 million which is sitting in a qualified plan (qp). Client has set up an inherited IRA to receive the funds. The qp custodian will not generate a trustee to trustee transfer to send the funds directly via wire to the inherited. The qp custodian will generate a check payable to the new inherited IRA fbo client and mail said check to client. This is of course not preferred but it does seem like this will work. As long as the distribution check is payable to the receiving plan, not the participant or the beneficiary and the funds spend no time in a taxable account this should work. Can you confirm that you believe this will be ok.
thank you
Joy Soulier



Yes, this will qualify as a direct rollover to the inherited IRA, and the check should have no taxes withheld. If the year of death RMD for the participant has not been completed, a separate check for that or the first beneficiary year RMD will be sent to the client separately.



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