Inherited IRA Account
What is the correct wording that an account must be set up as for an Inherited IRA…..I have never done one before …
The daughter and son recently lost their Mother who was 92 and they are both around 55….
I was under the impression that the wording needed to be something as
An Inherited IRA from Mary Smith ( deceased January 11, 2009)
FBO of Jane Smith…
Thanks for all your imput..
Permalink Submitted by Alan Spross on Tue, 2009-01-20 21:45
There is more than one way to properly register the inherited IRA account. The IRS prefers “Don Smith as beneficiary of Mary Smith”. In this format, the SS of record matches up with the first name shown on the account, the beneficiary receiving the funds.
However, some IRA custodians have their own preferences, and the main requirement is to show both the deceased and the beneficiary(s) in the registration. If that is done, there is rarely a problem with the IRS.