beneficiary disclaimer

Submitted by walt mooney on Thu, 2015-04-09 20:04

I have a single client age 64 who died with a 401(k) account. His primary beneficiary is his mother, age 92, and the contingent is his sister age 67. His mother does not need the money. Would it not be a good idea for her to disclaim, have the daughter rollover to a beneficiary IRA and have her younger age for the RMD? If so, how do you disclaim?



Submitted by Alan - IRA critic on Thu, 2015-04-09 21:26

  • A disclaimer fits the situation well. Here is Sec 2518 describing a qualified disclaimer: https://www.law.cornell.edu/uscode/text/26/2518
  • His mother or her POA should check with the plan to see if they have any special requirements for disclaimers, then the determination can be made whether to retain an attorney to assist or not. Note the 9 month time limit for filing.

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