Can a non-spouse beneficiary re-direct the investment option(s) of the

[Guest Kerry Holahan]

Can anyone offer me any insight on this matter?

My question, if it is unclear, is basically can a non-spouse beneficiary move the assets of the IRA sharholder from the current trustee to another trustee, once they assume the IRA?

Also, can anyone tell me if there are any Private Letter Rulings on this matter?

Thanks

[Kathy]

Maybe, maybe not... see my question dated 4/10/99 "naming your own beneficiary for an inherited IRA???"

The IRS has ruled in PLRs that it can be done but it seems to violate trust law.

[John G]

Did this occur because of a court settlement, such as a divorce? Or, are you talking about becoming the beneficiary after the original IRA owner has died?

I may be reaching beyond my expertise, but I can't imagine that you would be restricted from transfering the assets from one custodian to another. For example, the assets might be located a brokerage with poor service, sloppy record keeping, poor record with trades, or above market commissions/fees. Why would a customer not be entitled to move to another custodian? Kathy, please jump in again if I am not on target.

[Guest Kerry Holahan]

Thanks Kathy-

Can you tell me if there is a website where I can view the two PLR's you sited in your question dated 4-10-99?

John-

This would be a result of the IRA owner's death. Thanks.

[BPickerCPA]

You CAN most definitely move IRA assets from one custodian to another, but it MUST be via a trustee to trustee transfer. You CANNOT take personal control of the money; that would be a distribution, ineligible for a rollover.