Proper titling of an Inherited IRA

Submitted by Lakeblue12 on Tue, 2024-10-01 10:06

This is an excellent site for IRA information! Thank you!

I believe the Nationwide inherited fixed annuity I have, is incorrect. I have done research and talked to several people and cannot get a straight answer. I want my accounts to be titled correctly.

Your website makes it clear how the inherited IRA is to be titled. However, Nationwide says the maximum amount of characters (including spaces) that can be used is 29.  My name alone is 17 characters and my dad’s name (whom the IRA was inherited from) is 17 characters (we have same last name).  I’m having problems on how to truncate the title while still showing it’s inherited and with my name and dad’s name.

Another inherited account at a different company has my full name, with B/O followed by my dad’s full name. This format has 34 letters and I was wondering if it’s ok to leave the last 5 characters off my dad’s last name? Or, is there a way to properly title it within the 29 characters.

Currently, the contract just shows my name as the owner and annuitant. I’m not comfortable with this, even though Nationwide assured me the account has been coded as an inherited IRA.

I’ve had many problems with these accounts and errors made by the banks and advisors. Before I take a distribution I want the titling correct. I don’t want to add the IRS into my dealings.

Thank you kindly!



Submitted by Alan - IRA critic on Tue, 2024-10-01 11:50

As long as they don’t revise their platform to add characters they will have to abbreviate the title, with the bulk of it applied to dad’s name. More importantly, they need to code all distributions as code 4 on the 1099R, since if you are under 59.5, that would force you to file Form 5329 to eliminate the penalty.

Even if they severely abbreviated dad’s name (eg showing his first initial), it would not have any negative effect as long as your beneficiary status was clear (B/O or Bene). Are they not recommending an actual wording, or are they asking you to do it?

Note that in cases of abbreviations or severe truncating, I have not heard of any cases where it caused problems for the beneficiary. It’s more critical to have your SSN and contact info correct, and for the 1099R to be correct.

Submitted by Lakeblue12 on Tue, 2024-10-01 14:31

Hi Alan, thank you for responding!
I am not sure if I can use real names on here. So, I use the real first names and use a last name that has the same number of characters as mine and my dad’s last name.
Nationwide currently has the inherited IRA titled as “Lillian Lindquist” as the account owner and annuitant. No reference to my dad and no inherited IRA verbiage.
I had other issues on how this account was opened so I was working with the investigative unit at Nationwide. Once all the changes were made I reviewed the account and noticed the name. I researched and questioned people at the bank, advisors and my accountant. I could not get any straight answers.
I called the lady at Nationwide and told her my concerns. She stated we could try and truncate but she didn’t know what would be acceptable to the IRS. I told her I would research and get back to her.
I wasn’t sure if truncated names would be acceptable. Do you think these are acceptable: me and dad have same last name
Lillian Lindquist B/O Wm Lind or
Lillian Lindquist B/O W Lindq or
something better?
I thank you for your help!

Submitted by Alan - IRA critic on Tue, 2024-10-01 15:16

Either of your suggestions should work. The IRS really only cares to know that the account is inherited and now controlled by the beneficiary. The IRS has never required that the beneficiary relationship to the decedent was included either, as a spousal inherited IRA is titled in the same format as a non spouse inherited IRA even though RMD rules differ for spouse beneficiaries.

I have never encountered an issue with the IRS with respect to truncated names and other abbreviated formats that a limited processing platform of the custodian present.

A few years ago, a beneficiary on a Fidelity IRA with limited titling received the explanation that the Form 5498 sent to the IRS did indeed include the full name of the decedent even when the account title on other statements did not. The 5498 is the only document that the IRS receives, and there may be complete names on that form. You might ask Nationwide if the 5498 will show the complete name or if the complete name of the deceased is retained in their database. Again, the IRS really only cares that the account is inherited, so if that is clear you should not have anything to worry about.

Submitted by Lakeblue12 on Wed, 2024-10-02 00:13

Hello Alan,

I can’t thank you enough for your help and guidance on this issue!  I wish I had found this site a long time ago….it would have saved me a lot of frustration!

Thank you for adding the information on the Form 5498, I will call Nationwide to question the name on that, I did not know the Form 5498 is where the IRS picks up the name. I will also check to make sure they have the distribution code 4 down.

Thank you again for your help and your generosity in helping people!  There are not too many people and businesses like that out there anymore!

Felecia S

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