Seek professional advice prior to making any decsion regarding an inherited IRA. Some elections are irreversible.
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The Bottom Line
The IRA rollover privilege is a good deal for non-spousal qualified retirement plan beneficiaries who want to defer taxes. Remember, however, that you must set up a receiving IRA to accept the check from the retirement plan in a direct transfer. Then you must comply with the required minimum withdrawal rules to avoid the dreaded 50% penalty. If you inherit a significant amount of retirement plan money, consider hiring a good tax pro to help keep everything straight.