Deadline to claim and accept IRA
I have a client who passed away 2/20/2024. His surviving spouse has disclaimed her benefit from this IRA, she was 100% primary beneficiary. The official disclaim was signed by the client 10/11/2024. Do the contingent beneficiaries (4 children) have to claim and receive the proceeds from their fathers IRA within the same 9 months? Is there any time restriction to transfer ownership to the contingent beneficiaries? Is the only time restriction the original beneficiary disclaiming funds within 9 months?
Thank you,
Permalink Submitted by Alan - IRA critic on Wed, 2024-10-16 16:13
The only time limit is for filing a qualified disclaimer with the IRA custodian. The contingents have no deadline except to establish separate inherited IRA accounts by the end of 2025 to use their own LE for any RMDs. However, the sooner they act, the better so they can name their own beneficiaries, possibly transfer the inherited IRA to their desired custodian, and invest it the way they wish.