inherited IRA of inherited IRA
My client recently passed away with an inherited IRA titled with the original owner’s name and her name. It will now pass to her surviving husband as an inherited IRA. Who is the deceased in the title? Is it the original owner or the recently deceased spouse?
Permalink Submitted by Alan Spross on Mon, 2010-08-30 00:24
Both of them.
Eg. “Bill Smith as beneficiary of Ann Smith, the beneficiary of James Johnson”. But the IRA custodian systems limitations may cause them to require an alternate version of this.
Be sure Bill realizes that he cannot assume ownership of this IRA as a surviving spouse because it was originally (I assume) a non spouse inherited IRA. The RMD schedule will be continued as before with the divisor being reduced by 1.0 each year.