Titling for Inherited IRA
Our client has an inherited IRA from her father. She and her brother were both 50% beneficiaries on her fathers account. The brother has now passed away and the sister is the beneficiary of the inherited IRA.
How do you title the IRA now once it is transferred to the sister? It is titled now as Father, deceased; Brother, beneficiary.
Permalink Submitted by Alan - IRA critic on Wed, 2013-02-13 20:20
Sister probably has her own inherited IRA if separate accounts were created after father’s death. I take it that the brother named his sister as his successor beneficiary before passing on his inherited IRA. The IRS wants the title to show both the name of the current beneficiary (sister) and who she last inherited from (brother). Unless the IRA custodian wants to also show father’s name in addition to the other two, the father’s name is the one that can be eliminated in this situation. Sister cannot combine this inherited IRA with her other inherited IRA because the RMDs will be different. The IRA she received from her brother will have to continue her brother’s RMD schedule based on his age.
Permalink Submitted by Scott Mondeau on Thu, 2013-02-14 15:51
Thank you very much for that information. Very helpful.