Inherited IRA WWYD?

[savan]

I recently discovered that I am the beneficiary of an IRA.  Because it is time sensitive I need to decide what to do with it ASAP.  The amount I will inherit is small, $5250.  I initially planned to set up an inherited IRA and just take the RMDs spread out over the required number of years as we have no immediate need for the money.  However, in my research it seems that some banks won't bother with such a small amount and will fight you to take the full distribution.  

So, WWMMD?  Is it worth it to leave such small amount in an IRA or would you just take the money?

FWIW, DH and I have zero debt and have a bunch saved for retirement (7 figures worth).  We are 39 and 41.

[hamster]

I'd probably just take the money and be done with it.

[ohgillian]

In this case I'd do whatever my broker wanted me to do -- I'm assuming you have a good relationship with your current money manager. Absent that, in your case, I'd probably take the full amount, then dump it back into some other retirement vehicle. I say that only b/c I find it a small hassle to have lots of tiny separate accounts. ("Tiny" w/r/t your overall retirement picture.)

[savan]

Dec 12, 2019 11:51:29 GMT -5 hamster said:

I'd probably just take the money and be done with it.

 
Yep, as soon as I typed that out I realized that would be easier.  

[sadlebred]

Be done with it and take it. If you wanted to save it for retirement you could always put it in an IRA or ROTH.

[farmvillelover]

What bank are you with? I wouldn't personally want to pay taxes on it if I didn't have to, esp if I didn't need the money. I know for a fact at Fidelity it's easy to open an inherited IRA and you just see that account along with all of your other accounts on the home page. Not a hassle IMO.

[savan]

Dec 12, 2019 12:14:50 GMT -5 farmvillelover said:

What bank are you with? I wouldn't personally want to pay taxes on it if I didn't have to, esp if I didn't need the money. I know for a fact at Fidelity it's easy to open an inherited IRA and you just see that account along with all of your other accounts on the home page. Not a hassle IMO.

The IRA is with Chase with whom I have no accounts.  My understanding is that I would have to open an inherited IRA with them to get the money moved over to me and then I could move it after that.  I was all ready to do that until I read about Chase fighting with someone over a $2000 inherited IRA.  Now I'm not sure it's worth the hassle for such a small amount.  On top of the fact that I'm facing a 12/31 deadline because my brother, the executor, waited so long to inform the beneficiaries.  I should go into the bank and see what they say.

[dcn]

Dec 12, 2019 12:28:59 GMT -5 savan said:

Dec 12, 2019 12:14:50 GMT -5 farmvillelover said:

What bank are you with? I wouldn't personally want to pay taxes on it if I didn't have to, esp if I didn't need the money. I know for a fact at Fidelity it's easy to open an inherited IRA and you just see that account along with all of your other accounts on the home page. Not a hassle IMO.

The IRA is with Chase with whom I have no accounts.  My understanding is that I would have to open an inherited IRA with them to get the money moved over to me and then I could move it after that.  I was all ready to do that until I read about Chase fighting with someone over a $2000 inherited IRA.  Now I'm not sure it's worth the hassle for such a small amount.  On top of the fact that I'm facing a 12/31 deadline because my brother, the executor, waited so long to inform the beneficiaries.  I should go into the bank and see what they say.

When my H had an inherited IRA, he didn't have to open an account at the original bank.  We just called Vanguard where we have other accounts, and they rolled it over to an account there.  

[orval]

I am in the process of rolling over several inherited IRAs. I opened a ROTH and Trad. IRA on the phone with Vanguard(currently unfunded). I have forms to fill out from the originating company including the account number at Vanguard where I am putting them. I would call the company where you might want to roll it over and ask them to set up the account. Then they should acquire the account from the originating company. That is what Vanguard told me. Hope that makes sense!

[savan]

dcn , orval , Thanks! I don't know why I thought it had to start at Chase. Did the process take a long time? Do you think I could get it done in 19 days?

[orval]

savan --I am still in the middle so I don't know how long it takes to transfer the assets over. I just got my Vanguard acct. numbers yesterday (just took a phone call) in about 15 minutes. I still have to fill out the forms and send them to the originating company.

[savan]

Thanks everyone. This is just a small part of the total inheritance and I'm finding myself uncharacteristically indecisive about it all. I'd rather everyone still be alive :-(.

[dcn]

Dec 12, 2019 16:09:01 GMT -5 savan said:

dcn , orval , Thanks! I don't know why I thought it had to start at Chase. Did the process take a long time? Do you think I could get it done in 19 days?

It was a few years ago now but I don’t remember it dragging out at all.

[mcsangel2]

Dec 12, 2019 16:41:36 GMT -5 savan said:

Thanks everyone. This is just a small part of the total inheritance and I'm finding myself uncharacteristically indecisive about it all. I'd rather everyone still be alive :-(.

I had the same feelings after settling my mom's estate. I'm really sorry for your loss.