Non Spouse Inherited IRA (Naming)

IRA owner (Susan) passes away in 2019.

Leaves TIRA to adult son (James).

Mutual fund company has named the account as follows: “Fidelity Inherited IRA JAMES SMITH -IRA BDA -(ORIGINAL DEPOSITOR SUSAN SMITH)- FMTC, CUSTODIAN-Account Number: XXX-XXXXXXXX367.”

Based upon my reading of Mr. Slott’s just published book (an excellent read), does the above naming of account cover the problems he discusses in the section dealing with “Naming Inherited IRA’s?” James wants to avoid it being deemed a distribution and therefore taxable.

Also, just to confirm that James can deem this a “stretch” IRA as mother died in 2019?

Thanks !!!



Yes, he can stretch the IRA with his first RMD being due 12/31/2021. I have not heard of any titling issues with inherited IRAs, as obviously a huge firm like Fidelity would be the first to know if their title format was a problem. The IRS requires the name of the decedent and the name (or entity) of the beneficiary to be clearly identified in the title, in no particular order. Something like “James Smith as beneficiary of Susan Smith” would have sufficed and is more succinct.

Add new comment

Log in or register to post comments