A:

It depends.

If you are a "spouse beneficiary" for both the Keogh and the IRA, then you may transfer or roll over the inherited IRA assets to your own Traditional IRA, and you can also roll over the assets from the Keogh to the same IRA.

If you are a "non-spouse beneficiary" of the IRA, you must maintain the IRA assets in the inherited IRA. (For more on your distribution options, see Inherited Retirement Plan Assets.) And, if you are a non-spouse beneficiary of the Keogh (a type of qualified plan) distributions that you receive cannot be rolled over.

If the employer that adopted the Keogh was a sole proprietor, it may mean that the assets must be distributed from the Keogh as soon as possible, because there is no business to continue the maintenance of the Keogh plan. However, before you decide how to distribute the assets, be sure to talk to a competent tax professional about your options. Be sure to discuss ways to defer paying taxes on the amount, even if you are forced to distribute the balance from the Keogh. You may also want to discuss the matter with the financial institution that currently holds the assets.

This question was answered by Denise Appleby
(Contact Denise)

RELATED FAQS
  1. Can I put my IRA in a trust?

    Learn the proper way to transfer ownership of your IRA to a trust. Consider how naming the trust as a beneficiary affects ... Read Answer >>
  2. My recently deceased spouse's IRA has been rolled over into mine. Does the cost basis ...

    The basis attributed to IRA assets that you inherited remains the same. Since you are a spouse beneficiary and you elect ... Read Answer >>
  3. Can an IRA be used as security for a loan?

    The IRS prohibits the use of an IRA as security for a loan. If an individual borrows money against his or her IRA, the IRA ... Read Answer >>
  4. Is it permissible for a 70-year-old person to buy an IRA?

    It depends. For Roth IRAs, there are no age restrictions. For Traditional IRAs, there are no age restrictions if you are ... Read Answer >>
  5. Can I, without tax penalties, use the IRA I inherited from my father to buy a home ...

    If you inherited an IRA from someone who was not your spouse at the time he/she died, the amounts that you receive as a distribution ... Read Answer >>
  6. What is the "stretch IRA" concept?

    The "stretch IRA" is not a new IRA account on the market, or even a new investment concept, it is simply a wealth transfer ... Read Answer >>
Related Articles
  1. Taxes

    11 Things You May Not Know About Your IRA

    These little-known features will help you get the most out of your retirement savings.
  2. Retirement

    Keough vs. SEP: Small Business Retirement Plans

    Running your own company can lead to great personal satisfaction, but it can make planning for retirement a huge headache. Here are two plan options.
  3. Retirement

    Inherited IRA and 401(k) Rules: Don't Run Afoul

    What you need to know when it comes to the complex rules for inherited IRAs and 401(k)s.
  4. Retirement

    Inheriting an IRA: Tax Rules You Should Know

    Don’t get hit with a 50% penalty because you don’t know the required minimum distribution (RMD) rules for IRA beneficiaries.
  5. Retirement

    Tips On How To Use IRAs To Boost Retirement Savings

    According to the Trustees of the Social Security Fund, the fund will be depleted by 2037. Are you ready?
  6. Stock Analysis

    Trusts: Prevent Beneficiary Designation Mishaps

    Wills and revocable trusts are the cornerstone of estate planning, learn how you may spend considerable time and money maintaining these documents.
  7. Taxes

    Avoiding "Prohibited Transactions" In Your IRA

    To avoid jeopardizing your IRA assets, find out what transactions are prohibited.
  8. Options & Futures

    Must-Know Rules For Converting A 401(k) To A Roth

    In 2008, the IRS spelled out the details for converting employer-plan funds directly to Roth IRAs.
  9. Retirement

    Moving Retirement Plan Assets: How To Avoid Mistakes

    Sometimes things go wrong in a simple transfer of funds. Make sure you know how to avoid penalties.
  10. Retirement

    Top 10 Mistakes To Avoid On Your IRA

    IRA rules are complicated. It's easy to make mistakes – and they can cost you big time.
RELATED TERMS
  1. Keogh Plan

    A tax deferred pension plan available to self-employed individuals ...
  2. IRA Asset Will

    A document that specifies how the assets in an individual retirement ...
  3. Roth IRA Conversion

    A reportable movement of assets from a Traditional, SEP or SIMPLE ...
  4. IRA Rollover

    A transfer of funds from a retirement account into a Traditional ...
  5. Conduit IRA

    A traditional IRA that holds only assets that were distributed ...
  6. IRS Publication 590: Individual Retirement Arrangements (IRAs)

    A document published by the Internal Revenue Service (IRS) that ...
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center