LLC as Beneficiary
We just did an account audit and found they have their LLC as the beneficiary of the IRA.
Are you able to do this and if you can how?
We just did an account audit and found they have their LLC as the beneficiary of the IRA.
Are you able to do this and if you can how?
Permalink Submitted by Alan Spross on Tue, 2011-04-26 23:06
You can name the LLC, but it is a terrible idea because a non individual beneficiary can never be considered a designated beneficiary. An LLC like an estate does not have a life expectancy so the 5 year rule will apply if the IRA owner passes prior to the RBD.
While the same situation applies to a charitable beneficiary, at least the charity will not be paying income taxes on the RMDs or 5 year distribution so the stretch is not a factor with a charity.