A trustee-to-trustee transfer moves an inherited IRA from one custodian to another without the funds passing through the beneficiary's hands. For a non-spouse beneficiary, this is the only safe way to relocate the account — a 60-day rollover is not allowed.
Done right, the transfer is a non-event for taxes. Done wrong, the inherited IRA closes and the entire balance becomes taxable income.
Try the Free Inherited IRA RMD CalculatorWhat a trustee-to-trustee transfer is
In a trustee-to-trustee transfer, the receiving custodian asks the sending custodian to move the inherited IRA assets directly. Cash moves wire-to-wire; in-kind positions move broker-to-broker. The beneficiary signs paperwork authorizing the move but never receives a check or has the funds deposited in any personal account.
The IRS does not treat the move as a distribution. Nothing is reported as taxable income. Form 1099-R is not issued. The inherited IRA on the receiving end carries the same tax basis and the same RMD schedule as the account it replaced.
Like-account-to-like-account is required: inherited Traditional to inherited Traditional, inherited Roth to inherited Roth.
The titling rule that catches people
The inherited IRA at the receiving custodian must be titled correctly: in the name of the deceased original owner for the benefit of (FBO) the beneficiary. A typical title reads "Carol Brennan IRA, deceased, FBO Jim Brennan, beneficiary."
This is not cosmetic. If the receiving custodian opens the new account in the beneficiary's own name instead of as an inherited IRA, the IRS treats the transfer as a distribution. For a non-spouse, that means the entire balance is taxable in the year of the transfer. The damage is not reversible.
Before signing transfer paperwork, confirm the new account number is set up as an inherited IRA. The first statement from the receiving custodian should show the deceased owner's name above the FBO line.
What the beneficiary needs to do
Open the inherited IRA at the receiving custodian first, with correct titling. Then submit the receiving custodian's inherited-IRA transfer form, which authorizes the pull from the sending side. Include a copy of the death certificate if the receiving custodian asks; many do.
Take any RMD due for the current year before the transfer settles, or coordinate with both custodians on which side will pay it. RMDs do not transfer with the account — they remain owed for the year they are due, regardless of where the funds sit at year-end.
See the inherited-IRA pillar hub for the full beneficiary framework, How It Works for what SimpleRMD does, and the main RMD hub for RMD rules across all account types. If you are a non-spouse who already received a check intending to redeposit it within 60 days, see 60-day rollover of an inherited IRA — that route is not available to non-spouses.
This article is for informational purposes only and does not constitute tax, legal, or financial advice. IRS rules and tax laws are subject to change. Consult a qualified tax professional or financial advisor for guidance specific to your situation. SimpleRMD is a calculation and tracking tool — not a financial advisory service.
Sources: IRS Final Regulations T.D. 10001 (July 2024). IRS.gov (Publication 590-B, "Trustee-to-Trustee Transfers"). IRS Notices 2022-53, 2023-54, 2024-35. SECURE Act of 2019 (Pub. L. 116-94). SECURE 2.0 Act of 2022 (Pub. L. 117-328). Rules confirmed current as of May 2026.