Inherited IRA Rollover Question

[Hank Hebel]

I have a question related to an inherited IRA account. My dad passed away in 2016 and I rolled his retirement accounts into an inherited IRA with vanguard. My question is pretty straightforward: are there any tax implications with rolling the inherited IRA with vanguard into another self-directed IRA account that is managed by another company/custodian? I know that any distributions from my IRA is a taxable event subject to income taxation, but I just want to make sure that transferring from an inherited IRA to a self-directed IRA does not generate unexpected tax implications (because I'm simply transferring between slightly different IRA accounts and custodians and not taking any distributions).

Any help is much appreciated!

[Brian Eastman]

@Hank Hebel

You may move an inherited IRA from one institution to another without tax consequences. The only restriction is that you must execute a direct trustee-to-trustee transfer. Your receiving IRA custodian can assist with this process.

A "self-directed" IRA is exactly like any other IRA when it comes to account administration, timelines, beneficiaries, reporting, etc. The difference is simply on the investing side, and the capacity to invest beyond just the public exchanges.