Who gets IRA dist on DOD?
Please refresh my memory.. When an IRA remittance/distribution is effected on the IRA owner’s DOD… Is the decedent assumed to survived the entire day and the distribution effectively kept by his estate or must it be reversed and paid to his beneficiaries? Thanks
Permalink Submitted by Alan Spross on Tue, 2007-08-28 21:04
I am not aware of any rule regarding assumed survival periods. The general rule regarding rollovers is that a decedent cannot complete a rollover which is an interpretation of Sec 408(d)(3). However, there have been a number of PLRs in varying circumstances including those where the decedent’s intentions were undeniable to complete a rollover, or in other cases involving custodian error, where rollovers were permitted.
PLR 2004 15011 ruled that a non spouse beneficiary could not be completed for a non spouse beneficiary. 2004 15012 however, approved a rollover for a spouse IRA beneficiary when the spouse was also the estate executrix.
So this seems facts and circumstances driven depending on the reason for the distributions as well as who are the IRA beneficiaries, estate beneficiaries, and executor. The burden would probably be on other parties to prove that the estate should not be in receipt of the funds.