Question for the Money Doctors
Question submitted on Apr 5, 2013.
QuestionLast year my father passed away, and his four children were named as beneficiaries on an IRA of his. The IRA funds were split into 4 IRAs one for each of us.
I want to transfer the IRA from its present financial institution to another one, but to do that I would have to convert it from an inherited IRA to a traditional IRA.
Is this possible? If so, what are the pros/cons?
To keep the "stretch" benefits of your inherited IRA, you have to directly roll it over to another inherited IRA at the new financial institution. The new account''s registration should be identical to the old one. I suggest you contact the new financial institution and ask them to explain their transfer process to you. The implications of moving your inherited IRA to another inherited IRA involve the difference between the custodians you are moving to and from. Hopefully, you would be moving to better investment options, convenience and service as well as lower fees.
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