Roth IRA Beneficiary Designation
A woman left behind an IRA (that she opened a year ago) with her spouse as primary beneficiary and her two sons as contingent beneficiaries. The woman dies and her husband passes away four days later. Their legal address was in California and that’s where they both died. The legal address on the Roth IRA is N Illinois address. Who receives the proceeds from this woman’s Roth IRA? The Primary Beneficiary’s estate or the contingent beneficiaries?
Permalink Submitted by Alan - IRA critic on Thu, 2022-01-06 01:52
The surviving spouse would inherit and his estate would become the beneficiary of the IRA unless his executor was able to file a disclaimer of the death benefit on his behalf. The disclaimer deadline is 9 months from the date of her death. The benefit would then pass to the sons. Without the disclaimer, husband’s estate will inherit.