Inherited Xxxx IRAs. Except for direct rollovers of designated Xxxx assets from a deceased participant’s 401(k) plan(s), 403(b) arrangement(s), governmental 457(b) plan(s), qualified rollover contributions from inherited eligible retirement plan(s) other than a Xxxx XXX, direct transfers from another Inherited Xxxx XXX and certain recharacterized contributions from Inherited Traditional IRAs, no other contribution types are allowed to be contributed to the Inherited Xxxx XXX, unless otherwise permitted under the Internal Revenue Code or regulations. Eligible rollover distributions of designated Xxxx assets from a deceased participant’s Xxxx 401(k) plan(s), Xxxx 403(b) arrangement(s), or Xxxx 457(b) plan(s) may be rolled over by a nonspouse beneficiary to an Inherited Xxxx XXX. Rollovers to an Inherited Xxxx XXX must be sent directly from the plan administrator to the Inherited Xxxx XXX custodian. The nonspouse beneficiary may not have constructive receipt of the assets. The nonspouse beneficiary is solely responsible for tracking the basis and earnings of the assets rolled over. If a nonqualified distribution is rolled over from Xxxx 401(k), Xxxx 403(b), or Xxxx 457(b) to a Xxxx XXX, the basis and earnings must still be tracked. If a qualified distribution from a Xxxx 401(k), Xxxx 403(b), or Xxxx 457(b) is rolled over, the entire amount of the rollover contribution is considered basis in the Xxxx XXX. If current eligibility requirements as defined by the Internal Revenue Code and regulations are met, a nonspouse beneficiary may make a qualified rollover contribution to a Xxxx XXX from an eligible retirement plan other than a Xxxx XXX. A qualified rollover contribution must be sent in a direct trustee-to- trustee transaction from the distributing plan to the Inherited Xxxx XXX. The nonspouse beneficiary may not have constructive receipt of the assets. For assistance in determining qualified rollover contribution eligibility and the tax consequences of such a transaction, consult a tax advisor.
Inherited Xxxx IRAs. An Inherited Xxxx XXX is a Xxxx XXX that is acquired by a beneficiary upon your death. A person who inherits a Xxxx XXX cannot make cash or rollover contributions to the Xxxx XXX or treat it as his or her own. The only beneficiary of a Xxxx XXX who may elect to treat the Xxxx XXX as his or her own is the surviving spouse, provided he or she is the sole beneficiary and has an unlimited right to withdraw money from the Xxxx XXX.
Inherited Xxxx IRAs. An inherited Xxxx XXX is a Xxxx XXX that is acquired by a beneficiary who is not your spouse on your death. A person who inherits a Xxxx XXX cannot make cash or rollover contributions to the Xxxx XXX or treat it as his or her own. The only beneficiary of a Xxxx XXX who may elect to treat the Xxxx XXX as his or her own is the surviving spouse, provided he or she is the sole beneficiary and has an unlimited right to withdraw money from the Xxxx XXX. Qualified Rollover Contribution to a Xxxx XXX. This is a Xxxx XXX purchased with amounts received as a “qualified rollover contribution.” A “qualified rollover contribution” is a rollover contribution or conversion to a Xxxx XXX from a Traditional IRA or an eligible retirement plan (including an IRC section 401 or 403(b) plan, or an eligible IRC section 457 governmental plan) but only if such rollover contribution meets the following special rules:
