Q: Is it possible to roll over an inherited IRA into my personal IRA and not pay taxes on the distribution now? If that is not possible, will the brokerage firm be able to withhold taxes before the distribution of the funds? — S.H., Apopka
A: You cannot roll the proceeds into your own IRA because you are a non-spouse beneficiary. However, you can roll the proceeds into an inherited IRA and defer the income taxes. You’ll have 10 years to distribute the entire inherited IRA or if eligible, take Required Minimum Distributions over your life expectancy. The brokerage firm can help determine which distribution rules apply and withhold taxes whenever you begin taking distributions. –Tommy Lucas
Q: If I list my two children as beneficiaries on my accounts will those accounts need to be probated? — L.R., Windermere
A: No. If an account has a beneficiary designated on it, it would transfer direct to beneficiaries outside of probate. — Marisa Bradbury
Have a question? E-mail askanexpert@fpafla.com. Include your name (only your initials will be printed), hometown and phone. Questions are answered by Certified Financial Planners from the Financial Planning Association of Central Florida. Answers are for educational purposes only; you should also consult a financial professional. Questions and answers may be edited for space considerations.
