Inherited Non Spousal IRA – correctly titled?
Hello,
My Mom (deceased) had a traditional IRA. I am the beneficiary. I am in the process of transferring it to Vanguard, and want to be certain that it is titled correctly for me to be able to take distributions over my life expectancy.
My Vanguard account is showing that it is set up as an inherited IRA. The registration specifically shows:
“My name
BENEF My Mom’s Name”
Vanguard says it is good, but have seen so many horror stories of it not being handled correctly, would really appreciate a second look.
Thank you.
Permalink Submitted by tomd37 on Wed, 2016-05-18 18:31
That is Vanguard’s way of doing it. My son left his Roth IRA to his sister and it is titled Jane Doe BENEF John Doe. Tom D.
Permalink Submitted by Alan - IRA critic on Wed, 2016-05-18 18:34
That is fine. The title of the inherited IRA must include both the beneficiary and the decedent, in no particular order. Be sure you check to determine if you inherited any IRA basis from non deductible contributions made by your mother as this would reduce the taxable portion of your RMDs. Look for Form 8606 on her recent tax returns to determine if there is any basis. In addition, be sure to name your own beneficiary on the inherited IRA.
Permalink Submitted by Deena Lyssy on Thu, 2016-05-19 13:03
Thank you so much for the confirmation and information. This forum with so much info on a subject that can be so complicated is greatly appreciated at a time of loss when all of the minutia is overwhelming – thank you for taking the time to answer questions!