Transferring Inherited IRA to Fido

[marko]

I am my brother's financial Conservator. He has a non-spousal inherited IRA at Morgan Stanley but after a few years, I'm just finding them difficult to work with, particularly an inability to move funds without speaking directly to a broker.

I'd like to move his account to Fidelity where he has all his other investments and that I can make changes online myself.
Questions:
Can I just call Fidelity and have them move the account over?
Would they just apply the same stocks that he currently has, in kind?
Do I need to speak with Morgan or just let Fidelity do it?
He also has some after tax stocks in the account due to RMD actions. Would he have to pay tax as those stocks are transferred.?
What else do I need to know, considering it's a non-spousal inherited IRA?

 

[ncbill]

Setup a new inherited IRA account at Fidelity then have them ACATS the holdings from Morgan Stanley.

No need to involve MS at all.

Assuming the holdings are transferable (no funds proprietary to only MS)

Did he inherit the IRA before 2020 (stretch versus 10-year rule)

 

[timbervest]

LOL when I read the title I thought you were giving it to your dog!

 

[marko]

Setup a new inherited IRA account at Fidelity then have them ACATS the holdings from Morgan Stanley.

No need to involve MS at all.

Assuming the holdings are transferable (no funds proprietary to only MS)

Did he inherit the IRA before 2020 (stretch versus 10-year rule)

Thanks. This is helpful.

He inherited in January of 2020.

 

[pjm-7]

If there are proprietary funds at MS that cannot be transferred in kind, liquidate them to cash prior to Fidelity sending the paperwork to MS.

 

[audreyh1]

Fidelity can take care of you. Ask them your questions. They can handle the transfer from their end.

 

[scrabbler1]

I did this for my (snake-bit) friend back in late 2012. He established an account with Fidelity then, with my help, did an electronic transfer of the entire Inherited IRA from MSSB to Fidelity. We also did this for a brokerage account and later, a Roth IRA from a different financial institution. I checked with Fidelity beforehand to make sure all the non-Fidelity holdings were transferrable (they were). All went smoothly although there were dividend sweeps for about a month to pick up residual cash distributions in the non-Fidelity accounts.

The only thing which wasn't transferrable was, for some assets, any fractional shares. Those had to be liquidated first (they were, automatically), then the cash got moved to a Fidelity cash account. Sometimes, the incoming cash account was slightly different from Fidelity's cash account, so there was a separate move to blend them together. No big deal.

 

[UpQuark]

What else do I need to know, considering it's a non-spousal inherited IRA?

The only problem I had when I moved a non-spousal inherited IRA from Edward Jones to Fidelity was that Fidelity assumed the RMD had already been taken, but EJ had not taken it so I had some sort of IRS paperwork hassle eventually (I forget details but I remember hand-writing something asking to not be penalized and I did not have to pay the penalty).

 

[Theophrastus Bombastus]

Been there, done that.
Just contact Fidelity and they will walk you through the steps.

 

[Elizrogers]

I am my brother's financial Conservator. He has a non-spousal inherited IRA at Morgan Stanley but after a few years, I'm just finding them difficult to work with, particularly an inability to move funds without speaking directly to a broker.

I'd like to move his account to Fidelity where he has all his other investments and that I can make changes online myself.
Questions:
Can I just call Fidelity and have them move the account over?
Would they just apply the same stocks that he currently has, in kind?
Do I need to speak with Morgan or just let Fidelity do it?
He also has some after tax stocks in the account due to RMD actions. Would he have to pay tax as those stocks are transferred.?
What else do I need to know, considering it's a non-spousal inherited IRA?

Ha-ha. Just had to tell you that when I read the post title "Transferring..to Fido," I thought it was regarding making a dog beneficiary. Since I have been thinking about how to provide for my cats should I die first, I was interested. Too funny. Sorry I have no answers for you as all my Fidelity accounts are my own and have never moved anything.

 

[marko]

Update:
The transfer went through relatively painless. Just had to make one phone call concerning one account. Now, he also had an after-tax account at MS which also transferred over with a small balance (under $100K).

Does the after-tax cost basis re-set to the new account as of date of transfer? It looks like it did. Am I right to assume that he will have cap gains to pay from the MS end?, however, thanks to the recent downturn, he may indeed have a TLH in his favor.

 

[Flieger]

Update:
The transfer went through relatively painless. Just had to make one phone call concerning one account. Now, he also had an after-tax account at MS which also transferred over with a small balance (under $100K).

Does the after-tax cost basis re-set to the new account as of date of transfer? It looks like it did. Am I right to assume that he will have cap gains to pay from the MS end?, however, thanks to the recent downturn, he may indeed have a TLH in his favor.

I had to do this with one from my Dad. Did it all online at Fido, cost basis was automatically reset. Hope all works out well!

Flieger

 

[SJhawkins]

Does the after-tax cost basis re-set to the new account as of date of transfer? It looks like it did. Am I right to assume that he will have cap gains to pay from the MS end?, however, thanks to the recent downturn, he may indeed have a TLH in his favor.

When I moved accounts in the past the funds first move then the orginal basis shows up in a few days, could be longer I don't recall it's been a couple years.