Eligible Designated Beneficiaries and Disclaimers: Today’s Slott Report Mailbag

Thursday, September 26, 2024

Sarah Brenner, JD
Director of Retirement Education

Question:

When an IRA owner dies after their required beginning date, can an eligible designated beneficiary choose either the life expectancy option or the 10-year payout rule? 

Answer:

If an IRA owner dies on or after their required beginning date, the 10-year rule is not an option for an eligible designated beneficiary (EDB). The 10-year rule (for an EDB) is only available when the IRA owner dies before the required beginning date. After the required beginning date, the eligible designated beneficiary would have to take distributions over life expectancy.

Question:

Can an IRA beneficiary do a “partial” disclaimer or is a full disclaimer required? Thanks.

Answer:

A beneficiary can disclaim all or part of an IRA that they inherit. A full disclaimer of all the inherited IRA assets is not required.

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