Name Change for IRA
Looking for input, please.
I have an IRA that I am trying to move to other firm where I have the bulk of my investments. Goal is to move account from Firm 1 to Firm 2.
Issue is in the discrepancy in naming of accounts between firms 1 and 2.
– Firm 1 has name as one version (“Mary Smith”).
– Firm 2 has name as another version (“Linda Smith”)
– Social Security Administration has name recorded as “Linda Smith”
– Past 7 years of income taxes have been filed as “Mary Smith”
– SSN is same for “Mary Smith” and “Linda Smith”. Individual is one and same.
My thought is to have Firm 1 change name on account from “Mary Smith” to “Linda Smith”. The transfer of accounts could then be easily processed, However, does this seem too risky in terms of the IRS?
Thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2021-09-28 17:34
And why does this variance exist? What is the correct full name? Has the IRS ever inquired about the tax filing discrepancy with SSA?
Permalink Submitted by Chad Kile on Tue, 2021-09-28 17:47
There is not a good explanation for variance — likely what a state ID said at time IRA was opened versus what is actually on file with SSA. The names reflect the difference in given name versus colloquial name. Actual name with SSA is Linda Smith. IRS has never inquired about discrepancy. Thanks.
Permalink Submitted by Alan - IRA critic on Tue, 2021-09-28 18:12
The IRS should be matching returns with the name on file at SSA. Therefore, SSA should reflect the official name and Form 1040 should be filed using that name, and that name should be used on all IRAs and other retirement accounts. Perhaps the best solution is to submit a copy of the SS Card and/or birth certificate to Firm 1 and have them rename the IRA as “Linda Smith”. Once that is done the IRA can be easily transferred to Firm 2. Of course, if there has been any actual name change due to marriage or divorce, that would be an additional complication.