Non-Spouse Beneficiary Combining a Governmental 403(b) and a Traditional IRA

Q. Could a governmental 403(b) and a traditional IRA, owned by the same decedent aged 78, be combined into one inherited IRA by a non-spouse beneficiary? I understand that with the later effective date for governmental 403(b)s, the beneficiary may want to take advantage of the ability to stretch it beyond 10 years if the decedent died in 2020 or 2021.

A. Since regulations governing that have not been issued yet, it is a gray area—but a direct rollover into the inherited IRA can be done. It is possible that they may be subject to the stricter distributions rules. The new proposed regulations should be out at the latest in June 2021; there should be a better answer then. If possible, one could set up a separate inherited IRA until such time as it is known what the effect on distributions would be.