Q: Suppose an advisor has a 68-year old client whose uncle died, and she directly transferred his 403(b) account to an inherited IRA. She has her own 403(b) account and would now like to roll that 403(b) account into her inherited IRA. Is she permitted to do that?
A: No! Inherited accounts cannot receive rollovers from other plan types. They must “stand alone’ as an inherited account from which required minimum distributions must be taken annually!