Beneficary IRA Question
Have a ‘Beneficiary IRA’ account that the account holder has passed away …
Account currently registered –
XYZ Trust Co Cust For
FBO Jane Doe Bene (Martha Maker – Deceased)
Jane Doe inherited the account from her mother and now has passed. The account has listed currently as its beneficiary, the husband of Jane Doe.
Is the husband able to establish a ‘Bene IRA’ and just follow through with maintaining it (distributions etc…)under that registration ?
Permalink Submitted by Alan - IRA critic on Thu, 2015-07-23 19:14
Hello, Gregg. Yes, the husband can have the IRA retitled showing him as the beneficiary of Jane Doe (reference to Martha can be deleted). His RMDs will follow the RMD schedule used by Jane which would be her divisor being reduced by 1.0 every year as she should have been doing. He also must complete her year of death beneficiary RMD if she did not complete it, but he is not responsible for any RMD omissions in years prior to her year of death.