Inherited Ira rollover | Ed Slott and Company, LLC

Inherited Ira rollover

I have an inherited IRA in 2 financial institutions. It is titled the same since it was inherited from the same person at the same time. The RMD is figured on both and taken all from one institution. Are the 2 accounts considered the same IRA so that I may return the unwanted RMD to the institution that I didn't take it from?

This is a potential issue with Notice 2020-51, since the Notice requires the RMD to be returned to the distributing account. Therefore, you must convince the distributing custodian that the total distribution was RMD under the RMD aggregation rules for account inherited from the same decedent. You might have to provide a copy of the 12/31/2019 statement for the other inherited IRA that will also show the registration. Once the custodian understands what the total RMD is, they should accept the roll back. If they will not, you are probably stuck with the RMD for the other account, since no other custodian can accept the roll back.

 

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