Inheritance IRAs

I am coming into a small inheritance.   Part of it is in two iras.  My 4 siblings and I will divide them equally.  We have a lawyer to probate  the will, and there are no conflicts or issues.  I researched inheritance  iras and I believe I understand most of it.  I have to take a minimum disbursement  based on my life expectancy and pay taxes on it.  I do have a question for smarter folks than me.  Can I start a new inheritance ira and have the estate transfer my portion of both iras into it, or do I need two separate iras, or does the estate hold the original  iras and make disbursements  to each of us?  Thanks to anyone who can help.  I know I can ask my accountant after the holidays, but I'd love an early answer.


Since your minimum required disbursement is the same for both of the inherited IRA's, you can establish one inherited IRA account which will be funded with your share of the IRA's. Your inherited IRA account must specifically be named so that it identifies the deceased owner and you as beneficiary, e.g., "John Smith,  IRA(deceased on ........) F/B/O FilmCarp, beneficiary."


This is over my head, but one comment: I'm fairly certain that there are different rules for Traditional IRAs VS Roth IRAs. I believe the latter offer more options for the person inheriting.


thank you both.  Yes, there are different rules, but both of these are traditional iras. Cramer, to follow up, I assume I can open this ira anywhere I choose, and that it is independent  of my siblings.  


FilmCarp said:

thank you both.  Yes, there are different rules, but both of these are traditional iras. Cramer, to follow up, I assume I can open this ira anywhere I choose, and that it is independent  of my siblings.  

Yes. If you know where you would like to open it, you can call them on Monday to ask them your questions. No doubt they're very familiar with this. You don't have to wait until after the holidays to ask your accountant. 

eta - This says that two different IRA's can be combined so long as the divisor is the same, which is your case. The financial institution can confirm. 

https://www.irahelp.com/forum-post/25403-combining-inherited-iras




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