ESTATE IS LISTED AS BENEFICIARY ON TRADITIONAL IRA ACCOUNT | Ed Slott and Company, LLC

ESTATE IS LISTED AS BENEFICIARY ON TRADITIONAL IRA ACCOUNT

ESTATE IS LISTED AS BENEFICIARY ON TRADITIONAL IRA ACCOUNT

FACTS:
DECEASED HAD A TRADITIONAL IRA ACCOUNT
DECEASED WAS 51 YEARS OF AGE AND WAS NOT TAKING ANY RMD'S
DECEASED PASSED AWAY INTESTATE
DECEASED WAS SINGLE WITH NO CHILDREN
BENEFICIARY ON IRA AGREEMENT IS "THE ESTATE"

WILL THE IRS ALLOW AN DECEASED ESTATE TO ASSIGN OR TRANSFER THE IRA OUT OF THE ESTATE TO A PROPERLY TITLED INHERITED IRA FOR THE BENEFICIARIES?

I HAVE CONSULTED WITH THE TRUSTEE. THE TRUSTEE WILL ALLOW THIS TRANSFER PROVIDED THE TRUSTEE IS GIVEN A LIST OF THE BENEFICIARIES FROM THE PROBATE COURT.

THANK YOU

When the beneficiaries are eventually identified per state intestate law, the IRS should not object to assignment by the executor to inherited IRAs. However, the 5 year rule will apply to all beneficiary accounts. Trustees are not required to accept assignment and there are some that will refuse, particularly in this situation.

 

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