Inherited IRA

Submitted by David Frazier on Fri, 2015-10-09 17:30

Facts: IRA Beneficiary is a “look thru” trust with 4 named individuals as beneficiaries of the trust. Original owner dies in 2014.

Is it manadatory to set up an inherited IRA in the year after death? What happens if it is not set up until the second year of death?

Can the Inherited IRA be 4 separate accounts each in the name of the Trust fbo each named beneficiary as well as the original owner’s name in the title?



Submitted by Alan - IRA critic on Fri, 2015-10-09 18:08

  • There is no fixed deadline to have an IRA re titled as a beneficiary IRA, but long delays can create problems such as missed RMD including the completion of the final RMD of the deceased owner. At least with a trust beneficiary there should be provisions in place in the event the trust beneficiary passes.
  • As long as the trust continues, the inherited IRA can only be managed by the trustee of the trust and creating more accounts will not change RMDs or any trust accounting provisions. Separate inherited IRAs are usually only done if the trust can be terminated and the inherited IRAs assigned to each former trust beneficiary.


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