She is not yet of RMD-receiving age, and ideally would like to roll my Dad's IRA funds into her own IRA account that she also holds at the same bank.
Some info about my parents' situation:
- Both my parents are non-resident aliens
- My Dad was receiving RMDs for the last 10 years or so, with the last RMD issued in late 2020. This was not requested by my Dad as he had passed by then, and my understanding is that taking RMDs were optional in 2020 due to Covid, so not sure why that was issued
- My Mom is not yet of RMD-receiving age
- Both my parents have separate traditional IRA accounts at the same bank
Do any of these options below allow my Mom to roll my Dad's IRA funds into her own IRA?
From my understanding, the closest I can see is Option 6, but it looks like they would open a new IRA account (there is another section in the form that asks for consent to open an 'inherited money market IRA account) and transfer my Dad's IRA funds into that new account, so my Mom would then have 2 separate IRA accounts at the same bank?
<< Copy-pasted from the distribution election form >>
Section - Distribution Options (Select only one of the distribution options below)
BANK RECOMMENDS YOU CONTACT YOUR TAX ADVISOR BEFORE MAKING YOUR ELECTION
A beneficiary of an IRA Plan should elect how to receive the proceeds of the IRA Plan no later than 09/30 of the year following the year of the IRA Plan Depositor's death. Any separate beneficiary accounts must be established by 12/31 of the year following the IRA Plan Depositor's death. Available options depend on the age of the IRA Plan Depositor, the relationship of the beneficiary to the IRA Depositor, and the type of IRA Plan.
IRA proceeds will be deposited to and held in the new Money Market IRA account listed above.
Options for all beneficiaries
1. Lump Sum Distribution - I elect to receive my entire portion of the IRA Plan in a single lump sum payment
2. Life Expectancy Payments - I elect to receive my entire portion of the IRA Plan by taking payments over the longer of my own life expectancy or the remaining life expectancy of the deceased IRA Plan Depositor.
3. Specific Amount - I elect to receive my entire portion of the IRA Plan by taking payments of $xx
4. Specific Term - I elect to receive my entire portion of the IRA Plan by taking payments over zz years
5. 5-Year Payout - I elect to receive my entire portion of the IRA Plan by 12/31 of the year containing the 5th anniversary of the IRA Plan Depositor's death. (Only available if the deceased IRA Plan Depositor was under the age of 70.5 on the date of death).
Additional Options for Spouse Only
6. Spouse Treat as Own - I am the spouse of the deceased IRA Plan Depositor and I elect to treat my entire portion of the IRA Plan as my own IRA
7. Spousal Exception - I am the spouse of the deceased IRA Plan Depositor and I elect to delay taking distributions until the year my spouse would have reached age 70.5
Thank you in advance for your help!