IRA Beneficiary Disclaimer
If a person disclaims an IRA and there is not a contingent beneficiary and the custodians ordering rules go into effect to designate who will receive receive the assets can stretch provisions still apply for the recipient of the disclaimed assets or will they need to take the assets out over 5 years? If a class is named beneficiary ex. Children per the custodians ordering rules, can one of the children also disclaim to push the assets all to the other children?
Permalink Submitted by Alan - IRA critic on Tue, 2019-05-07 04:15
Yes, the disclaimant is treated as pre deceasing the IRA owner, and the recipient(s) of the IRA will have the same RMD calculation as if they had been directly named by the IRA owner. If certain children receive the IRA as a class, they will be treated as designated beneficiaries, and they are also allowed to disclaim. No disclaimant other than a spouse can receive a portion of the IRA as a result of filing a disclaimer per Sec 2518.