Permalink Submitted by Alan Spross on Wed, 2010-08-18 23:54
There is no time limit, but there are various RMD related complications as follows:
Following date of death:
1) 9 months to file a disclaimer unless beneficiary under age 21
2) 9/30 of the year following year of death for determination of the designated beneficiary if more than one beneficiary named
3) End of year following year of death to establish separate accounts using respective life expectancies in the event of more than one individual beneficiary as of prior 9/30 and to take first RMD without incurring penalty
4) End of 5th year following year of death to distribute entire account if 5 year rule applies instead of life expectancy distributions.
In addition, any delay at all increases risk of beneficiary passing without naming own successor beneficiary.
Permalink Submitted by Alan Spross on Wed, 2010-08-18 23:54
There is no time limit, but there are various RMD related complications as follows:
Following date of death:
1) 9 months to file a disclaimer unless beneficiary under age 21
2) 9/30 of the year following year of death for determination of the designated beneficiary if more than one beneficiary named
3) End of year following year of death to establish separate accounts using respective life expectancies in the event of more than one individual beneficiary as of prior 9/30 and to take first RMD without incurring penalty
4) End of 5th year following year of death to distribute entire account if 5 year rule applies instead of life expectancy distributions.
In addition, any delay at all increases risk of beneficiary passing without naming own successor beneficiary.