Beneficiary IRA Eligibility for 60 Day Rule
I have a client who established an Beneficiary IRA in 2011 from her father’s pension plan. She’s been withdrawing RMDs based on her life expediency. She’s in a short-term cash crunch that will be resolved in the next 30 days. Are there limitations to the 60 day rule when it comes to beneficiary IRA’s? i.e. can I withdraw funds and replace them (or transfer to a new custodian) within 60 days?
Permalink Submitted by Alan - IRA critic on Sun, 2020-11-01 01:42
No. She can of course take distributions in excess of her RMD, but cannot return them to an inherited IRA. There are no rollovers permitted for non spouse inherited IRA distributions. There was a limited exception that expired 8/31, but only applied to amounts that would have been RMDs for 2020, had those RMDs not been waived. It would not have applied to this situation.