Inherited IRA, Again

[Jesse]

Well I don't know what I am saying. She can't do a rollover at all. She would have to open a new IRA which is subject to the contribution limit each year. Is that correct?

That is correct. If she qualifies she could open a nondeductible IRA, but I would steer her toward a Roth IRA if that be the case.

[geekgirldany]

Well I don't know what I am saying. She can't do a rollover at all. She would have to open a new IRA which is subject to the contribution limit each year. Is that correct?

[geekgirldany]

Yeah that is what I thought. Just wanted to make sure. Combined with her husband she is phased out on IRA deduction. I guess she can still put it in another IRA? I know she will still have to pay the tax but maybe she can get it earned back.

[Jesse]

Because it was an inherited IRA no rollover is allowed.

I did not re-read the prior thread but I think it was asked if she could contribute to an IRA of her own, or possibly husband if married, if she is below the income phaseout. If income is too high and phases out a deductible contribution or no earned income I think she is just out of luck.

[geekgirldany]

Well this is going back to my post:

http://www.thetaxbook.com/forums/showthread.php?t=9031

She took out the Inherited IRA in full. I had told her that she was taking out the RMDs for atleast two years. The other years I would figure the penalty and get it waived. That everything was okay and continue. I think she got a little aggravated with the advsior and is trying to end the relationship there.

As I said she took the IRA out. Now I told her the two options 5 years take it out or take out a percentage based on a chart the RMD. She said I told her to take it out.

Anyways now that this money is out can it be rolled over within 60 days to another IRA? I don't think so but I want to make sure. Why don't people call me before they do things like this?