Stretch Beneficiary IRA
A wife inherits her husban’ds IRA but keeps it under his name so it is titled: XXX Bank, Custodian for Jane Doe, Beneficiary of the John Doe Self Directed IRA.
She has been receiving the RMD payments per his equivalent age each year.
She dies and her child inherits the IRA.
How is it titled and will the child be able to stretch it over their lifetime.
In other words, does anything change becasue the IRA has been inherited twice?
Permalink Submitted by Alan Spross on Wed, 2010-03-03 18:40
The successor beneficiary child is added to the current registration, eg “Robert Doe, successor beneficiary of Jane Doe, beneficiary of John Doe IRA”. There is flexibility to use the format required by the IRA custodian such that their systems support a given format. But all three names should show on the registration.
The child, as a successor beneficiary, is only allowed to continue Jane’s RMD calculation. There is no new stretch for the child, but there would have been had Jane passed before RMDs were required of her. That is evidently not the case here. If she was using husband’s age for RMDs, she must have been older than he was??