inherited IRA non spouse less than 10 years younger

Submitted by Howchen Lau on Thu, 2020-10-22 19:50

I understand you can strecth a nonspouse IRA ex sister 77 owner of IRA passes and younger sister 72 is beneficiary
she can strecth it over her life time who moniters the ages does the company holding the IRA assets keep the birth
date of the deceased owner along with the youngers sisters date of birth and what if younger sister transfers the
IRA to a new company then what



Submitted by Alan - IRA critic on Thu, 2020-10-22 20:41

In this case the beneficiary can stretch the inherited IRA over their single life expectancy. The current IRA custodian will already have the DOB of decedent, and will have to obtain some evidence of the DOB of beneficiary. The inherited IRA will show both names and the IRS also has these DOBs. Such info and the DOD should also be transferred to any new IRA Custodian to which the inherited IRA is directly transferred, and that will not affect the stretch period for the beneficiary. Just in case this data is lost upon transfer or subsequent transfers, the beneficiary should retain that information with their IRA papers.

Submitted by Howchen Lau on Thu, 2020-10-22 21:33

is any part of the inherited non spouse IRA under the Stretch beneficary available for roth conversion

Submitted by David Mertz on Thu, 2020-10-22 22:38

  • Ultimately, it’s the responsibility of the beneficiary to see that the proper amount of RMD is distributed each year.  The IRA custodian cannot force out RMDs, particularly since they have no way of knowing if the RMD has been satisfied by a distribution from a different IRA that the beneficiary inherited from this same IRA participant.  Given this, it really doesn’t matter if the custodian has the information needed to determine RMDs unless the beneficiary asks the custodian to perform the RMD calculation.
  • A non-spouse beneficiary of a traditional IRA is not permitted to do a Roth conversion from the inherited IRA.

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