Discussion:Inherited IRA-Beneficiary (s)
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Discussion Forum Index --> Advanced Tax Questions --> Inherited IRA-Beneficiary (s)
Discussion Forum Index --> Tax Questions --> Inherited IRA-Beneficiary (s)
Southparkcpa (talk|edits) said: | 9 June 2009 |
| I have a client who inherited an IRA, all was done properly and he is taking the RMD's over his life expectancy. If he should die unexpectedly, can an inherited IRA be passed to his beneficiary's for rollover treatment or will they simply receive the payout and it is then taxable. I have checked this site and a few resources and can't seem to find this. It should be common but I am drawing a blank. | |
Southparkcpa (talk|edits) said: | 9 June 2009 |
| This is an inherited -Traditional IRA titled in the decedents name (propery.).
BLRG- Thanks, I recognize that he can have his own beneficiaries BUT the law is pretty firm that this is NOT his IRA but the decdents and careful titling was necessary. I can't find anything in the code SOLID that says his beneficiaries are entitled to RMD's. | |
| 9 June 2009 | |
| I've taken CPE seminars about this. The inherited Traditional IRA titled in the decedent's name can go on for generations. The benes get the RMD according to their life expectancy. | |
| 14 June 2009 | |
| On a tangent -- is this correct that the beneficiary of an inherited IRA can't roll that money into a Roth? | |
| 14 June 2009 | |
| Depends. If the beneficiary is a surviving spouse, then the Roth conversion would be ok. | |
| 14 June 2009 | |
| Southpark, read the original IRA contract. There should be a provision for successor beneficiaries. | |
| 30 July 2009 | |
| I got this same question today. My client says that the IRA company told her that there could be no beneficiary added. Furthermore, upon her death the remaining IRA account is immediately distributable to her estate. | |
| 31 July 2009 | |
| If the contract really says that, then you are stuck with it. | |
| 31 July 2009 | |
| I think an important point to make too is that if the IRA was included in the decedent's estate, if it was a taxable estate, not to forget the estate tax deduction eligible to the beneficiaries receving the distributions out of the IRA. | |
| 3 August 2009 | |
| Not sure if the above replies misunderstood my question.
My client is the beneficiary of her deceased father's IRA. So now she has the Inherited IRA. She wants to name her daughter as beneficiary of this IRA. She is being told that you are not allowed to identify a beneficiary on an Inherited IRA. | |
| 3 August 2009 | |
| In the last few years, most IRA plan documents that did not allow this option have been amended to allow beneficiaries to designate a succession of beneficiaries. Check with your IRA custodian regarding its IRA plan document provisions. If your current IRA custodian does not allow this option, you may be allowed to transfer your inherited IRA to one that does. | |
| 3 August 2009 | |
| Wiles, read the IRA custodial contract (as last amended). You will find the answer. | |
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