Mom died and 4 adult children are listed as beneficiaries. The IRA is a minor $ amount and the children are thinking of just distributing the entire thing out rather than setting up beneficiary IRAs. My understanding is that this would just result in 1099s to them with a code 4 – due to death, which wouldn’t result in any early withdrawal penalties, just regular income taxation. The beneficiaries are all under 59 1/2. Is this correct?