Message Font: Serif | Sans-Serif
No. of Recommendations: 2
Is it possible to take my inherited portion of the TDA, convert it to an inherited IRA, and then combine that inherited IRA into one account with the inherited IRA already at Vanguard?

Tax law allows, but does not require, the plan to do a direct transfer into an inherited IRA, so part of the answer depends on what they say. If they do such a transfer tax law does not allow you, a non-spouse, to roll it anywhere or make any contributions to it (Pub 590. p. 25).

Your Required Minimum Distributions begin next year unless you choose to take the entire amount within 5 years. See the discussion beginning on page 37 of Pub 590. While you must calculate the RMD for each IRA separately, I see nothing that prohibits you from taking that amount from whatever combination of accounts you choose.

Rule Your Retirement Home Fool
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.