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I thank you Phil, this was not my decision to make. At one time, it was titled an FBO, not sure why the change. But as they say, We Own it now, literally ;)

If a mistake was made in titling the account, and if you haven't been taking out required distributions, it may not be as simple as "We Own it now".

According to the Wall St Journal, the IRS is starting to crack down on improper transfers and missed distributions:

From the article: Ed Slott, an IRA consultant in Rockville Centre, N.Y., recently came across the case of a 31-year-old woman who inherited an IRA at age 17 when her father died. Her family's adviser made a mistake, putting the $170,000 into her own IRA rather than retitling the father's account as an inherited IRA.

Now, the entire account balance is going to pay penalties since the IRA was really a taxable distribution 14 years ago, Mr. Slott says.

For that problem, "there was no solution, and it's not right," he says. "She was innocent. All that had to happen was an adviser put the money in an inherited IRA for her from day one."

I would strongly suggest that if you inherited an IRA from your parent that isn't titled as "HMALETTER's Parent (dec'd xx/xx/xx) FBO HMALETTER, beneficiary" or something very similar, that you need to get it re-titled correctly sooner, rather than later. As you can see, the IRS is apparently going back many years to catch these errors, and it doesn't sound like if they catch them that they are willing to forgive even if it wasn't the owner's fault.

In addition, if you haven't been taking out the required distributions, you need to get that corrected sooner, rather than later, too.

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