disclaiming an inherited IRA
Can I disclaim an inherited IRA. Passing it on to my child. Currently,the inherited IRA is to be split by 4 “named” (beneficiaries) siblings of the deceased.
The IRA Institution says the “disclaiming would amount to dividing the IRA by 1/3 rds”. Not allowing my child to Inherit the IRA.
No third tier beneficiaries were named
If disallowed would a “per stirpes” designation accomplished this?
Permalink Submitted by Alan - IRA critic on Tue, 2014-07-15 18:31
The IRA custodian should know what their beneficiary clause indicates, but you should still read it carefully for yourself. Most IRA agreements would conform to what the custodian has indicated, ie each sibling would get 1/3 if you disclaimed. Had the IRA owner added “per stirpes” after your name, then your disclaimer would result in your child receiving your share because you would have been treated as pre deceasing the IRA owner.