Non-Spouse Beneficiary for IRA
As an example, for a defined benefit plan, a worker’s spouse must give signed approval before the plan will accept a non-spouse as a beneficiary. Is that true for an IRA as well — a spouse must give authorization before an IRA owner can designate a non-spouse beneficiary? Is this area regulated by the states? Thanks for your help.
Permalink Submitted by Alan Spross on Fri, 2010-12-03 21:35
This requirement does not apply to IRA accounts.
But in community property states where the IRA is considered such property, the named beneficiary’s interest is potentially secondary to a spousal vested interest of 50% of the marital assets including retirement accounts.
Permalink Submitted by Steve Peterman on Fri, 2010-12-03 21:40
So in a community property state, would it behoove the IRA owner to obtain a written authorization from the spouse in case a non-spouse beneficiary is sought, or does the fact that it’s a community property state overrride any such authorization? Thanks for your quick help!