Inherited IRA

[Guest colinm]

I inherited an IRA from my 69 year old brother. I know I can take distributions over 5 years, my life expectancy, or lump sum. If I do want to take distributions over my life but want to move the money from the company where it is now (change custodians), what is the best way to do that?

Do I change it to a beneficiary IRA and then do a trustee to trustee transfer or is there a better way? Does it have to be re-titled to a beneficiary IRA?

If so, what is the correct wording for a beneficiary IRA?

[Guest Taxwoman]

See this thread for answers to some of your questions .

http://www.benefitslink.com/boards/index.php?showtopic=11873

Regarding transferring the IRA, providing the delivering and receiving custodians permits the transfer, it can be done.

Check with both custodians to find out their operational procedures. Some just re-title the existing IRA and tag it 'inherited', While others require the beneficiary to open a separate 'inherited IRA', to which the assets are transferred. The transfer to the successor custodian is done from the 'inherited' IRA.