Disclaiming IRA with per stirpes language
When one of the beneficiaries of an IRA disclaims their portion, and the language is per stirpes, they have 2 daughter that would share it. Do they get to take the IRA as a Bene IRA, and if so what age do they get to use for the minimum distribution, their Mother’s as she was the disclaimer or their individual ages, or the oldest of these 2 grandkids of the original IRA holder?
Permalink Submitted by Alan Spross on Thu, 2008-08-28 22:40
They would be considered designated beneficiaries and could create separate accounts by the end of the year following the year of the owner’s death and use their own individual life expectancies. If they do not create separate accounts in time, then the age of the oldest beneficiary would apply, and that beneficiary may well be in the mother’s generation.
Therefore, time requirements to file the disclaimer and then get the separate accounts set up should be considered.