Father passed away in Jan 2023. The primary beneficiary of the IRA was the daughter, although Father was married before his passing (mother is contingent). Daughter and mother were on the same page with the IRA going to the daughter. When the beneficiary form was signed in 2020, daughter had no income, and mother had significant. However, the roles reversed as the mother retired last year, and daughter started a job.

Once the father passed, the beneficiary IRA was opened and assets were sent from the deceased’s IRA into the daughters beneficiary IRA. Now, the daughter/mother realize that they shouldn’t of sent the funds to the daughter, and should have sent funds to the mother (for better tax treatment – tax rates, and favorable distribution rules).

Now that the funds are in the bene IRA, is there any way to reverse the above? Since the mother was contingent, she could have disclaimed the IRA and sent it to the mom, correct? Any way to do that now?