Mom doesnt name a bene on IRA. HELP
Scenario……Mom has Inherited spousal 401k from deceased Husband. She is terminal and now is setting up her own IRA. If mom does not name her children as beneficiaries on the IRA and passes away and the IRA goes to the estate and the children are sole inheritors of the estate do they get the benefits of an Inherited IRA ……In other words can they now stretch the IRA as a non spousal inherited IRA? After not being named bene’s on original IRA documents. Please help me on this one ASAP……….Thank you for you time. Michael
Permalink Submitted by Michael Hassett on Mon, 2008-03-24 14:33
It should be noted that mom is 69 currently and her RBD is two years away……..
Permalink Submitted by Alan Spross on Mon, 2008-03-24 21:32
No, if the estate becomes the beneficiary by default or by being named by the IRA owner, the estate cannot be a designated beneficiary and the estate beneficiaries cannot stretch the RMDs. If IRA owner passes prior to their RBD, this means the 5 year rule will apply to estate beneficiaries.