charities as beneficiaries under the Secure Act

Please advice if an IRA beneficiary is a charity, is it true the 10 year rule does not apply?



The RMD would be either the 5 year rule if owner passed prior to RBD, or the remaining LE of the owner if owner passed on or after the RBD. But this is largely a moot point since the charity will typically be paid in a lump sum as soon as the proper papers and death certificate are filed with the IRA custodian. And if a charity is the beneficiary of only a % of the IRA, it is still normally paid off right away so it is no longer a beneficiary on the key beneficiary determination date of 9/30 of the year following IRA owner’s death.

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