Inheriting IRA as Dual Citizen

[brianbbc]

For a spouse yes and apparently a non-child (RMDs mandatory in this case) beneficiary, but rules are funny for a child depending on their age. After 21, the 10 year rule applies in this case. That may change in the future anyways. As another benefit, if you are unaware, there is a bill in US congress that has bipartisan support to eliminate the social security windfall eliminate for pension clawbacks. That would be helpful for those qualifying for SS and Canadian based pensions

[formerpatriot]

brianbbc wrote:
> Spouse gets rollover advantage only. Some specific rule changes but
> generally everyone else has 10 years to withdrawal all funds from ira or
> Roth. Pretty advantageous now to prolong growth, and minimize tax burden
> when doing inheritance planning. Btw, the inheritance ira/roth is the
> only exception account that Vanguard will allow Canadian residents to open.
> I check and confirmed that with them. You can do it also with Raymond James
> and other cross border companies but they tend to want a high fee, then
> manage your account for you for more fees. Vanguard doesn’t charge out of
> their ordinary fee structure. Thanks again

Good point regarding Vanguard.
My wife, a Canadian resident, recently inherited 2 IRAs, one at T Rowe Price and one at Vanguard.
Given that she has a 401k at TIAA, we thought she could transfer the 2 inherited IRAs to TIAA.
But TIAA said they would not accept such transfers.
T Rowe Price said we had to either take the full distribution or transfer the inherited IRA elsewhere.
Vanguard allowed my wife to keep the inherited IRA but would not allow a transfer from T Rowe Price to Vanguard.
My wife ended up taking the whole T Rowe Price inherited IRA as a lump sum.
She will take out the Vanguard inherited IRA over the next 10 years.

[brianbbc]

Both my wife and I have Roths and made the election with the cra properly. In the event on one us inherits the others Roth, I know this can be easily done on the USA side in brokerage company, either rollover into my/her account or open a new account. Because we both already made the election or previously established accounts and followed guidelines properly (no Canadian contribution), will this rollover money also need another one time election the year after (tax deadline) it was established? Or just rollover and forget about?

[nelsona]

Rollovers from one Roth-type account to another are not reported, including those from another person.

[BeaconHillWealth]

To be prudent I always suggest clients do an additional ROTH election for inherited accounts.

Phil

brianbbc wrote:
> Both my wife and I have Roths and made the election with the cra properly.
> In the event on one us inherits the others Roth, I know this can be easily
> done on the USA side in brokerage company, either rollover into my/her
> account or open a new account. Because we both already made the election or
> previously established accounts and followed guidelines properly (no
> Canadian contribution), will this rollover money also need another one time
> election the year after (tax deadline) it was established? Or just
> rollover and forget about?