AmVets and The American Legion as Disgnated Benificiaries
I am seriously considering making the above captioned organizations my Designated Beneficiaries on the ROTH IRA–using their IRS TIN identifiers.
Can these organizations legally “stretch” the ROTH IRAs if the trustee is agreeable to the stretch after my death.
I thank you for your patience.
Permalink Submitted by Alan Spross on Thu, 2008-07-17 23:14
These beneficiaries could use the 5 year rule if they chose to since a Roth owner is deemed to pass prior to his required beginning date. That means that no RMDs would be required, but the account would have to be fully distributed by the end of the 5 th year following the year of owner’s death.
For RMD purposes, a non individual cannot be considered a designated beneficiary except for individual beneficiaries of qualified trusts.
I imagine that most charities simply cash in these accounts since there are no taxes due nor are there taxes incurred on their earnings from the cashed in IRA.