Charity as one of IRA Beneficiaries
Client has named a charity for $50,000 and the rest to 2 individuals (not spouses).
The rep at Fidelity says they cannot just issue a check to the charity, it has to open a Beneficiary IRA.
Is this correct?
Client has named a charity for $50,000 and the rest to 2 individuals (not spouses).
The rep at Fidelity says they cannot just issue a check to the charity, it has to open a Beneficiary IRA.
Is this correct?
Permalink Submitted by Alan - IRA critic on Wed, 2023-01-25 22:03
This is an internal Fidelity requirement so that each IRA account only bears one SSN or TIN. Once the charity has established their inherited IRA, that inherited IRA should be fully distributed no later than 9/30 of the year following the year of death. In addition, the two individuals should also establish separate inherited IRAs no later than 12/31 of that year to take advantage of the separate account rules.