IRA beneficiaries

IRA OWNER DIES.
THE PRIMARY BENEFICIARY DIES BEFORE THE FUNDS ARE COLLECTED.
WILL THE FUNDS GO TO THE PRIMARY BENEFICIARY’S ESTATE OR WILL THEY PASS TO THE CONTINGENT BENEFICIARY?



If the primary beneficiary named their own successor beneficiary, the funds will go there. The original contingent beneficiary became void since the primary beneficiary was alive when the owner passed and did not disclaim the IRA before they also passed.

The funds would then go to wherever the IRA agreement so indicates. In most cases it probably would indicate the deceased beneficiary’s estate.



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