Splitting IRA among non spousal beneficiaries
If an individual Joe Smith wishes to leave his IRA to his 4 children in equal shares, is this the correct sequence?
1. Name the 4 children on the IRA beneficiary form, stipulating their shares
2. At death of Joe Smith, IRA is split into 4 separate IRAs by way of a trustee-to-trustee transfer
3. Each new IRA must be titled correctly “Joe Smith deceased, FBO name of child”
4. The split must occur no later than the end of the year following the year of Joe’s death
Permalink Submitted by Al Fry on Thu, 2007-12-27 15:36
Is this the same Joe Smith, Rookie RP last year for the Mets? Seriously, the steps seem to be correct. Only in Step # 3, the IRS prefers “Susie Smith as bene of Joe Smith”. They want the first name listed to match the SSN for tax purposes. Beneficiary can be abbreviated as “bene”.