Disclaiming a Traditional IRA Which has Per Stirpes
My mother recently passed. Her IRA lists my father (who passed a year ago) as the primary beneficiary, and me and my siblings as secondary beneficiaries. There is also a Per Stirpes box checked off.
For tax purposes, I would like to disclaim my portion of the inheritance and have the assets pass on to my children. I am receiving conflicting information as to whether or not this is possible. Please advise.
Permalink Submitted by Alan - IRA critic on Tue, 2021-05-25 18:46
The beneficiary clause in the IRA agreement must be carefully checked to determine the disposition of your share of the IRA should you disclaim. In most cases, your qualified disclaimer would result in your children inheriting your share. With or without the disclaimer, the 10 year rule will apply barring disability status of your children.