Death of IRA holder
Client 84 passes away. Has small IRA and 401K daughter in her early 50’s is sole heir. How should the ownership be titled in a transfer of these assets, knowing she must make annual withdrawals based on life expectancy tables. Thanks
Permalink Submitted by Alan - IRA critic on Fri, 2013-07-12 16:58
Accounts should be titled in inherited form showing the name of the decedent and the name of the daughter in no particular order. IRA custodian or 401k plan may have a preferred format supported by their processing platform. Daughter should probably have a direct transfer of the 401k made to an inherited IRA and with respect to the 401k only, she could roll it into an inherited Roth IRA if she wanted to.
Permalink Submitted by nick sklenar on Fri, 2013-07-12 17:09
My client did not receive an RMD from 1 of their IRAs in 2012. In 2011 we/they filed paperwork for recurring annual rmd’s from this insurance company. We had the insurance company issue rmd asap (June 2013). Originally they said they could issue a corrected 1099 for 2012, but now say no. They are trying leaving the penalty up to the client. Can they or can they not issue a corrected 1099? If not, is there any other recourse in addition to requesting the IRS waive the penaly? Thanks
Permalink Submitted by Alan - IRA critic on Fri, 2013-07-12 18:17