I'm trying to establish the facts in a discussion with just such a custodian. Boilerplate text in their form used by beneficiaries to file a claim implies that the only option for non-spousal beneficiaries is the creation of an inherited TIRA. Their normal annual custodial fee is $40/year. I doubt they save themselves much money if they insist on creating the account just so I can claim less than $1500. Hope springs eternal, I guess.

I know that there are IRS experts who frequent this board. I hope to hear from one who has a definitive answer.

thanks,

baumgrenze