If you are named the beneficiary of a non-spouse
IRA, to avoid a taxable event, make sure you request a trustee-to-trustee transfer. Your
inherited IRA must be directly transferred from one account to another or from one IRA
custodian to another. There is no 60 day tax free window to put
the money back into the IRA account. Any check you receive will be taxed as ordinary
income. This rule applies even if you redeposit the check into the inherited IRA from whence
it came. Also remember not to commingle any IRA’s you inherit. If you inherit different types of IRAs, such
as Roth IRA or a SEP, you are not permitted to combine them into a single inherited IRA.
Always consult a tax professional before you make any final decisions.