Disclaiming an inherited IRA in favor of an IRA for a minor
An IRA beneficary disclaims in favor of an ‘Deceased’ IRA account for minor children. Is this allowed? Very important please!
An IRA beneficary disclaims in favor of an ‘Deceased’ IRA account for minor children. Is this allowed? Very important please!
Permalink Submitted by Alan - IRA critic on Fri, 2013-11-15 19:46
A beneficiary can certainly disclaim, but cannot direct where the funds will go. THis is pre determined by the IRA contingent beneficiaries or sometimes by the provisions of the IRA agreement. If minor children are designated as contingent beneficiaries and the primary beneficiary disclaims correctly by the disclaimer deadline, the minors will inherit the account, but state law may require an UTMA account to be established to receive the distributions.