Disabled person receiving an inherited IRA as a non spouse
My understanding is that the disabled person is still eligible to use stretch provisions instead of the ten year Secure Act provision. if yes, would there need to be any documentation in support of the disability
Permalink Submitted by Alan - IRA critic on Mon, 2020-10-26 18:12
The format for documentation requirements are not clear yet other than documentation (of some type) is required and the disabled status is determined as of the DOD only. Prior to the IRS providing documentation details, the disabled beneficiary should secure a letter from their MD which indicates that the beneficiary meets the requirements of Sec 72(m)(7) on xx/xx/20xx (the DOD). If there are other beneficiaries, the disabled beneficiary should also create a separate inherited IRA by the end of the year following the year of death in order to avoid being caught up in complexities resulting from a multiple beneficiary situation.