What code is in box 7 on the 1099-R? If a code 4, then it cannot be rolled over and is a taxable distribution. An inherited IRA will never have a code G.
A "non-spousal" inherited IRA is not eligible to be rolled over at all. It can only be transferred with a trustee-to-trustee transfer to another inherited account and must remain in the name of the deceased. If the money was distributed to you and put into another IRA then any amount that exceeds your allowable yearly contribution limit, is an excess contribution, subject to a penalty each year until it is removed.
See IRS Pub 590B
https://www.irs.gov/publications/p590b/ch01.html#en_US_2016_publink1000230538Quote from Pub 590B
"Inherited from someone other than spouse. If you inherit a traditional IRA from anyone other than your deceased spouse, you cannot treat the inherited IRA as your own. This means that you cannot make any contributions to the IRA. It also means you cannot roll over any amounts into or out of the inherited IRA. However, you can make a trustee-to-trustee transfer as long as the IRA into which amounts are being moved is set up and maintained in the name of the deceased IRA owner for the benefit of you as beneficiary. "
**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.**
