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My mother passed away last year. She left her three children as POD to her traditional IRA. I would like to give my 1/3 portion to my sister as a gesture of thanks for the 10 years she cared of our mother. My sister plans to transfer it into a beneficiary IRA. The bank holding the IRA says I cannot do this.

My question is can I do this? Thanks for any help you can offer.

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You are not permitted to redirect the IRA. If you disclaim your share, the two existing beneficiaries split your portion. It's as if you passed away before mom, and the IRA beneficiaries that were alive were just your siblings.

What you can do, is accept your portion, using a beneficiary IRA, and withdraw a controlled portion each year, gifting the proceeds to your sister. This will mitigate the tax hit, and pass the money to her. There's a $14K/yr limit before a bit of paperwork is required.

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