Inherited IRA at Edward Jones - Do I need to create an account in my name? How to remove immediately.

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Rgrey
Posts: 1
Joined: Thu Mar 23, 2023 2:01 am

Inherited IRA at Edward Jones - Do I need to create an account in my name? How to remove immediately.

Post by Rgrey »

HI

I inherited a trust and IRA's at Edward Jones. One IRA is in a select account (non managed) and one is in an advisory account (managed).

The accounts are still in the deceased name (I am the beneficiary) and Edward Jones is asking me to set up two IRA accounts in my name to receive the funds:

1) Do I need to actually create an inherited IRA account in my name as the beneficiary or can Vanguard/Charles Schwab pull the assets from the deceased account and put them into an Inherited IRA at Vanguard/Charles Schwab?

2) If I do need to create Edward Jones inherited IRA accounts in my name and then have Vanguard/Charles Schwab pull the assets, can I change the advisory account (managed) to a select account (non managed) or does it have to match? Please note I am not concerned about fixing the mess they made in the advisory account.

I am extremely dissatisfied with Edwards jones and am reluctant to authorize them to create any account, much less to authorize any kind of advisory (managed) permissions.

Thank you!
Parkinglotracer
Posts: 3944
Joined: Fri Dec 20, 2019 2:49 am
Location: Upstate NY

Re: Inherited IRA at Edward Jones - Do I need to create an account in my name? How to remove immediately.

Post by Parkinglotracer »

Sorry for your loss. My experience is one needs to get the accounts legally in your name by presenting death certificate, etc then one can move the accounts elsewhere. I don’t know how soon they will let you end their advisory service in the process. Good luck.
aristotelian
Posts: 12277
Joined: Wed Jan 11, 2017 7:05 pm

Re: Inherited IRA at Edward Jones - Do I need to create an account in my name? How to remove immediately.

Post by aristotelian »

Yes, you do need to create the account at EJ. No worries, you can transfer it almost immediately as soon as it is set up. One good thing about EJ, if I remember correctly I don't think they charge a transfer fee.
PaunchyPirate
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Joined: Sun Nov 30, 2014 6:58 pm

Re: Inherited IRA at Edward Jones - Do I need to create an account in my name? How to remove immediately.

Post by PaunchyPirate »

You will likely have to ask EJ if you need to create the second account as a managed account to match the source IRA in order to do the initial transfer. I would hope it doesn't, just to simplify things.

But yes, this is the normal process for accepting inherited IRAs. You create your own account of the right type (per the broker's instructions) and then the broker transfers the inheritance into it. Then as soon as that is all done, you can have another broker transfer it away from EJ.
peteyboy
Posts: 407
Joined: Tue Feb 07, 2023 2:26 pm

Re: Inherited IRA at Edward Jones - Do I need to create an account in my name? How to remove immediately.

Post by peteyboy »

My wife just went through this. She inherited an IRA from her deceased father - a Schwab IRA. Set up beneficiary IRA at Schwab. Then transferred to Vanguard. Was seamless.

Easiest way to handle is to set up the beneficiary IRA for each IRA at EJ - two accounts total. Once you see that the $/assets have transferred into those beneficiary IRA accounts, then initiate transfer to Vanguard or Schwab (pull from V or S).
GAAP
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Joined: Fri Apr 08, 2016 12:41 pm

Re: Inherited IRA at Edward Jones - Do I need to create an account in my name? How to remove immediately.

Post by GAAP »

To create an inherited IRA for you requires that the IRA be associated with your SSN. That requires an account that they transfer into. After the Inherited IRA is created and funded, you can move the funds wherever you wish.

The same would be true at Vanguard or any other firm.
“Adapt what is useful, reject what is useless, and add what is specifically your own.” ― Bruce Lee
FromAto401k
Posts: 67
Joined: Tue Feb 14, 2023 6:33 pm

Re: Inherited IRA at Edward Jones - Do I need to create an account in my name? How to remove immediately.

Post by FromAto401k »

Going through this now. There is NOT a requirement that the inherited IRA be set up at the same institution. It just has to be the same type of account. So if it's an IRA, you need to set up an Inherited IRA. If it's a Roth IRA, you need to set up an Inherited Roth IRA. You can then instruct EJ where to send the funds.

However, it is generally the path of least resistance to set up the accounts at the same institution, and then do a transfer to your preferred institution.
Alan S.
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Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Inherited IRA at Edward Jones - Do I need to create an account in my name? How to remove immediately.

Post by Alan S. »

EJ may require you to set up 2 inherited IRA accounts as an internal requirement, but there is no reason that you should need more than one inherited IRA account at the new custodian to receive the balances from the 2 accounts at EJ.

If the decedent was subject to RMDs and did not complete the year of death RMD, you are responsible for completing it, and can do that from the inherited IRA at the new custodian. Be sure you know your beneficiary RMD requirements under the Secure Act. If any questions, please post with DOB and DOD of the plan owner.
twh
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Joined: Sat Feb 08, 2020 2:15 pm

Re: Inherited IRA at Edward Jones - Do I need to create an account in my name? How to remove immediately.

Post by twh »

Whether or not it is legally required to set up an account at the brokerage holding the to-be-distributed-assets, that will be the path of least resistance. Just do that and then transfer it out.
miket29
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Joined: Tue Jun 20, 2017 9:07 pm

Re: Inherited IRA at Edward Jones - Do I need to create an account in my name? How to remove immediately.

Post by miket29 »

Rgrey wrote: Thu Mar 23, 2023 2:13 am 1) Do I need to actually create an inherited IRA account in my name as the beneficiary or can Vanguard/Charles Schwab pull the assets from the deceased account and put them into an Inherited IRA at Vanguard/Charles Schwab?
Not a lawyer, but from what I've read "A beneficiary IRA must be titled in the decedent's name for the benefit of the beneficiary" according to https://finance.zacks.com/title-benefic ... 10103.html

And "The number one rule for an inherited IRA is never, never, NEVER put the inherited funds into an IRA in your own name. Don’t request a check payable to you either. Both of those actions create a taxable distribution to you, the beneficiary, and you no longer have a tax deferred account." according to https://www.irahelp.com/slottreport/how ... erited-ira
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