Slott Report question re: IRA beneficiaries split between people and a charity
First, I’m not a financial professional.
In the answer to Brandon’s question in this Slott Report
https://irahelp.com/slottreport/5-year-rule-and-multiple-beneficiaries-todays-slott-report-mailbag
it says
“After death, you have until December 31 of the year after death to split the account into inherited IRAs or, in this case, to cash out the charity. As long as the charity is timely cashed out after death and the remaining beneficiaries have individual inherited IRAs set up for them before the deadline, they will not be negatively impacted and can follow the payout rules applicable to living people.”
Investopedia and Barron’s disagree and say the charity has to disclaim or take their portion by Sept 30th of the year after death. The persons then have until Dec 31st.
https://www.investopedia.com/articles/retirement/03/091003.asp
Which is correct?
Permalink Submitted by Alan - IRA critic on Sat, 2022-06-25 20:04
Permalink Submitted by Ginny Trautman on Sat, 2022-06-25 20:59
Thank you so much for answering. It sounds safer to avoid confusion by opening a second IRA to leave money to both people and charities.
Permalink Submitted by Bruce Steiner on Sun, 2022-06-26 18:37
Permalink Submitted by Ginny Trautman on Tue, 2022-06-28 15:29
Thanks, Bruce, for the clarification. I really appreciate the people here who take the time here to help others.