- Jurisdiction
- Illinois
My mother passed away just after receiving two 401k rollover checks that are directly address to the destination IRA FBO Mom and not the 60-day indirect type made out directly to her. My sister and I are beneficiaries on the original 401ks, the destination IRA, and in the will for all the assets in the estate.
I originally was hoping to either get the checks reclaimed to the 401k accounts and distributed to us or for the rollover IRA to accept them after death but neither seems to be allowed. I will be in contact with my probate and estate lawyers again soon but wanted to ask others as this is a unique situation and involves some IRS aspects.
Electronic rollovers were not available from either Fidelity or Empower with these accounts, but they are still direct rollovers as far as I'm aware. I was told they weren't bound by the 60-day deposit limit like indirect ones are.
Letters of testamentary should be given to me soon and I'm the designated executor. Is there any way I can handle these so that they don't turn into lump sum distributions from the estate account to my sister and I? With a very large income through all of this it would be great to protect them in an IRA for the 5 allowable years and withdraw some each year. RMDs had not begun yet.
I don't think I'd be allowed to deposit them in the rollover IRA that was opened for them even if I'm allowed to endorse them as executor. Is it possible for an IRA to be opened in the name of the estate that then distributes them to two inherited IRAs for my sister and I?
This article talks about a court case from 1982 about an indirect rollover being allowed to happen after death and before depositing but it's such a unique situation it's hard to find more resources.
irahelp.com
Any help would be appreciated. Even if it's confirmation that they'll just be cashed out in lump sum distributions because then I can stop researching this to death.
I originally was hoping to either get the checks reclaimed to the 401k accounts and distributed to us or for the rollover IRA to accept them after death but neither seems to be allowed. I will be in contact with my probate and estate lawyers again soon but wanted to ask others as this is a unique situation and involves some IRS aspects.
Electronic rollovers were not available from either Fidelity or Empower with these accounts, but they are still direct rollovers as far as I'm aware. I was told they weren't bound by the 60-day deposit limit like indirect ones are.
Letters of testamentary should be given to me soon and I'm the designated executor. Is there any way I can handle these so that they don't turn into lump sum distributions from the estate account to my sister and I? With a very large income through all of this it would be great to protect them in an IRA for the 5 allowable years and withdraw some each year. RMDs had not begun yet.
I don't think I'd be allowed to deposit them in the rollover IRA that was opened for them even if I'm allowed to endorse them as executor. Is it possible for an IRA to be opened in the name of the estate that then distributes them to two inherited IRAs for my sister and I?
This article talks about a court case from 1982 about an indirect rollover being allowed to happen after death and before depositing but it's such a unique situation it's hard to find more resources.
Death During a Rollover - Ed Slott and Company, LLC
A financial advisor contacted me about her client who had recently passed away. The advisor was legitimately concerned about a rollover check received by the now-deceased individual. It had not been deposited into his IRA prior to death. Was her client’s estate stuck with a taxable distribution...
Any help would be appreciated. Even if it's confirmation that they'll just be cashed out in lump sum distributions because then I can stop researching this to death.
