The word “Deceased” in Inherited IRA Title
This may be a silly question but, in the title of an Inherited Non Spouse Traditional IRA, it doesn’t matter whether the word “IRA” is next to the name of the Deceased or whether the word “IRA” is next to the name of the Inheritor/Beneficiary) does it?
Permalink Submitted by Alan - IRA critic on Tue, 2016-12-20 19:47
No, it does not matter. Some custodians have processing platform related titling procedures that do not result in the clearest title on inherited IRAs. That includes use of various obscure abbreviations as well.Probably the worst downside is when the beneficiary also owns his own IRA account, gets confused and makes a contribution to the inherited IRA in error. That creates a major problem because custodians do not know what to do next to fix it, and the IRS is not clear either.