Transferring Inherited Roth annuity funds to Inherited Roth IRA

[zzz]

I have an Inherited (4/2020, child) Roth annuity at AIG (Corebridge Financial) and was advised that I need to withdraw all the funds by 4/2025. The SECURE act specifies 10 years, but AIG restricts it to 5.

I wanted to transfer the funds to an Inherited Roth IRA at another institution in order to get 10 years under the Roth.  Now, AIG will not allow me to transfer the money trustee-trustee, only to withdraw it. I ask for the Distribution Code that would appear in box 7 of form 1099R, and was told it would be “N”. I would then move the money to a new Inherited Roth IRA within 60 days.

Is this type of transfer allowed while still remaining under the Roth umbrella?

[dmertz · Accepted solution]

No 60-day rollover is permitted.  Funds are paid to you are not permitted to be deposited into an inherited Roth IRA.

[Critter-3]

Not sure what your issue is ... all the ROTH distributions are tax free.  So if you want to continue to invest the money you can invest in another annuity.  Or if you are eligible  make a ROTH contribution.  

[Mike9241]

@Critter-3 

maybe the op can't contribute to their own Roth so the ability to defer taxes on the earnings pn the distribution is lost.  

[zzz]

@Mike9241 

True -- there is no earned income. 

[zzz]

@dmertz 

AIG did tell me that in the first calendar year, I could do a Roth trustee-trustee transfer, but not now.  No further clarification on whether these were their rules or from IRS.

[dmertz]

There is no statutory or regulatory limitation on doing a trustee-to-trustee transfer of an IRA.  A trustee-to-trustee transfer is equivalent to an investment change.