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. What is the difference between a Keogh and an IRA?

    The Keogh plan, or HR10, is an employer-funded, tax-deferred retirement plan designed for unincorporated businesses or self-employed ... Read Answer >>
  2. Upon my death, will the beneficiaries of my IRA be compelled to take the entire amount ...

    It depends. If the beneficiary of your IRA is your spouse, he or she will be eligible to transfer the amount to his or her ... Read Answer >>
Related Articles
  1. Financial Advisor

    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.
  2. Financial Advisor

    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.
  3. Managing Wealth

    Managing Inherited IRAs: Distributions and Taxes

    If you have inherited an IRA account you don’t need to turn it over to the estate, regardless of what the will says.
  4. Financial Advisor

    SEP vs. Keogh Plans: Which is Right for You?

    SEP and Keogh plans each have their pros and cons. Here's how to choose which one is right for you.
  5. Retirement

    How Advisors Can Protect Inherited IRAs

    A new Supreme Court ruling has some financial advisors rushing to set up trusts to help protect inherited IRAs. Is that necessary?
  6. Managing Wealth

    How to Maximize Inherited Retirement Accounts

    Leaving a retirement account to heirs takes planning for the giver and the receiver.
  7. Financial Advisor

    Top Estate Planning Tips for 401(k)s and IRAs

    Here's how to avoid estate planning pitfalls when it comes to leaving IRA and 401(k) assets to heirs.
  8. Retirement

    5 Secrets You Didn't Know About Traditional IRAs

    A traditional IRA gives you a current-year tax benefit and future years of tax savings – minus the income restrictions that limit who can have a Roth IRA.
  9. Financial Advisor

    3 Costly Retirement Account Mistakes to Avoid

    These are the most common pitfalls investors should try to avoid when it comes to retirement accounts.
  10. Retirement

    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.
RELATED TERMS
  1. Keogh Plan

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

    An individual retirement account that is left to a beneficiary ...
  3. Extended IRA

    An IRA that allows a second generation beneficiary to continue ...
  4. IRA Asset Will

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

    A reportable movement of assets from a Traditional, SEP or SIMPLE ...
  6. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
Hot Definitions
  1. Block (Bitcoin Block)

    Blocks are files where data pertaining to the Bitcoin network is permanently recorded.
  2. Fintech

    Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
  3. Ex-Dividend

    A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
  4. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  5. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
  6. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial ...
Trading Center