Can IRA Beneficiary disclaim portion of Inherited IRA?
We learned my wife’s sister is the sole beneficiary of their deceased brother’s IRA.
This was a surprise to all, as the will is 50/50 between the sisters. Knowing the IRA beneficiary designation supercedes the will, can the beneficiary sister voluntarily disclaim 50% of the Inherited IRA to go to the other sister (named contingent)?
Permalink Submitted by Alan - IRA critic on Thu, 2017-12-14 18:13
Yes, as long as a qualified disclaimer is filed by the 9 month deadline. Your wife would receive the % disclaimed. If the year of death RMD is distributed before the disclaimer, the disclaimer is still valid. Separate inherited IRA accounts would need to be established by the end of the year following the year brother passed in order for the younger sister to use her own life expectancy for RMDs rather than the age of the oldest.