I am the beneficiary of an IRA and a Keogh. Can I combine them into one plan?

By Denise Appleby AAA
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 does U.S. law say about contingent beneficiaries?

    Learn about regulations the United States has on the naming of contingent beneficiaries, the types of contingencies that ...
  2. Places where I can open an IRA Account?

    Open an IRA through brokerage firms, mutual funds, banks and other major financial institutions, or through large Internet ...
  3. How do I change my contingent beneficiary?

    Learn what life insurance companies and retirement plan accounts require from you to change your contingent beneficiary designations.
  4. What kinds of assets can be included in a revocable trust?

    Understand what types of assets can be included in a revocable trust, and why some asset types are excluded from this estate ...
RELATED TERMS
  1. Contingent Beneficiary

    1. A beneficiary specified by an insurance contract holder who ...
  2. Self Invested Personal Pension (SIPP)

    A tax-efficient retirement savings account available in Great ...
  3. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
  4. Gold IRA

    Definition of Gold IRA
  5. Eligible Transfer

    An IRS-allowed movement of assets into or out of an individual ...
  6. Leveraged Benefits

    The use – by a business owner or professional practitioner – ...

You May Also Like

Related Articles
  1. Trading Strategies

    Top 7 Roth IRA Stocks for 2015

  2. Professionals

    Are Longevity Annuities in 401(k)s a ...

  3. Professionals

    Why Retirement Advice Is Better But ...

  4. Professionals

    Coming Soon: Private Equity In 401(k) ...

  5. Professionals

    Ways To Cut 401(k) Expenses

Trading Center