@ESCtaxes2020 wrote:
Thank you. Just to be clear my adult son can arrange with the IRA admin firm (T Rowe Price) for a direct trustee-to-trustee transfer/ inherited IRA, take father's necessary 2020 RMD and then just let the money grow "indefinitely" in son's "Inherited IRA," thereby avoiding the 10 year SECURE Act depletion requirement? How is this possible when the act is so clear? Wouldn't everyone be doing this to avoid the 10 year cap? Thanks for any clarification.
No. A inherited IRA can only be transferred into another inherited IRA account that must remain in the Fathers name as the owner of the IRA with your son as benificuary. It will always be an inherited IRA with the same distribution requirements wherever the IRA is held.
Only an IRA that is inherited by a *spouse* can be treated as the spouses own IRA and put in the spouses name at which point is no longer inherited.
See IRS pub 590B for details under Inherited from someone other than spouse.
https://www.irs.gov/publications/p590b#en_US_2019_publink1000230542
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
