Remainder/Successor Beneficiary IRA Title

Submitted by Cheryl Van Beek on Mon, 2016-11-14 01:48

I understand from previous answers that it is not necessary to keep the original Depositor’s name when a Non spouse Remainder/Successor beneficiary inherits a traditional IRA from the first Beneficiary, but how does the new inherited IRA for the Successor/remainder beneficiary get titled? If original was Ann Green Beneficiary IRA, Mary Smith Deceased and then Ann Green dies and Jane Doe is the remainder beneficiary, could the new title simply be Jane Doe Beneficiary IRA, Ann Green Deceased? The reason I ask is because in such a case, the plan number (not account number for one such IRA is kept by the Custodian under the original owner’s social security number. The Distributions have been paid and recorded correctly under the Beneficiary’s social security number. But for some reason the keep that plan number. Thanks again.



Submitted by Alan - IRA critic on Mon, 2016-11-14 04:10

A custodian’s processing platform may vary, so I am not sure if all custodians follow the 5498 Instructions of the IRS copied here:

In the case of successor beneficiaries, apply the preceding rules by treating the prior beneficiary as the decedent and the successor beneficiary as the beneficiary. Using the example above (Brian Willow as beneficiary of Joan Maple), when that account passes to Brian’s successor beneficiary, Maurice Poplar, Form 5498 and the annual statement for Maurice should state “Maurice Poplar as beneficiary of Brian Willow.” The final Form 5498 and annual statement for Brian Willow will state “Brian Willow as beneficiary of Joan Maple” and will show the FMV as of the date of Brian’s death or year-end valuation, depending on the method chosen.

Submitted by Cheryl Van Beek on Mon, 2016-11-14 14:26

Thank you for asking my question about titling, Alan-iracritic, but when you say, “The final Form 5498 and annual statement for Brian Willow will state “Brian Willow as beneficiary of Joan Maple” and will show the FMV as of the date of Brian’s death or year-end valuation, depending on the method chosen,” do you mean to figure the Beneficiary’s RMD for year after decedent’s death?  I didn’t know the FMV at the time of decededent’s death was ever used for figuring Beneficiary’s RMD for year after decedent’s death.  thought it was always the Year End Value of the decedent’s account in the year they died. If I’m understanding this correctly, if the Custodian doesn’t provide 5498 but only year end statements, I guess I’d have to ask them what was put on 5498. I don’t like to put social security numbers over the internet.

Submitted by Alan - IRA critic on Mon, 2016-11-14 16:32

The 5498 Inst indicate that there are two 5498 forms – one for the beneficiary and one for the decedent. There are also two alternate methods for the custodian to communicate RMD information. In addition, it is fairly commonplace that the custodian is not even aware of the owner’s death for a considerable period, sometimes years after his death. All these details are too lengthy to describe here. Suggest you review the 1099R/5498 Inst starting on p 19 here:https://www.irs.gov/pub/irs-pdf/i1099r.pdf?_ga=1.167454974.1347689568.1458248194

Submitted by Cheryl Van Beek on Mon, 2016-11-14 18:39

Thanks.

Add new comment

Log in or register to post comments