Can an IRA with a trust as the beneficiary be rolled into an new IRA

[Guest gmandmjjones]

My father set up an IRA with his trust as the beneficiary. After he died the IRA was cashed out and the proceeds were divided between myself and my two sisters. Am I able to roll that amout into a new IRA so I can save the tax hit? I get conflicting answers from the finaincial planners I have talked to.

[BPickerCPA]

Pure and simple, NO. A non spouse beneficiary CANNOT roll the distribution into their own IRA.

Any financial planner who tells you otherwise doesn't know what he/she is talking about (and I'd be suspicious of any other advice they're giving out).

[ElGuapo]

Are they maybe using the term "IRA" loosely and actually referring to a BDA (beneficiary distribution account)?

[Appleby]

ty …From what understand, the term “beneficiary distribution account” is just a term used by some financial planners to refer to inherited/beneficiary IRA, i.e. an IRA established to maintained the inherited IRA assets. Do you use it in a different context?

In any case, I think you will agree that it wouldn’t change Barry’s response…

[Guest ERISA_kid]

Agreed. Once the non-spouse beneficiary takes a distribution, it is impossible to roll over the distributed amounts to the non-spouse's own IRA or an inherited IRA.

[ElGuapo]

ty …From what understand, the term “beneficiary distribution account” is just a term used by some financial planners to refer to inherited/beneficiary IRA, i.e. an IRA established to maintained the inherited IRA assets. Do you use it in a different context?

In any case, I think you will agree that it wouldn’t change Barry’s response…

Same context, I just wondered if it might help gmandmj to shed a little more light on what they mean by "cashed out." Obviously, if this money was transfered to an inherited IRA we have a very different scenario. Unlikely, I realize, based on the original post, but I'm sure you've found people don't always use the same terms you and I would use to describe a transaction.

I guess I was just hoping that these "financial planners" weren't as misguided as it seems they were, but maybe I'm giving them too much credit. Did these people have any credentials?