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May 30, 2021

How should my inherited IRA be titled given that I am a successor beneficiary?

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How should my inherited IRA be titled given that I am a successor beneficiary?

I inherited an IRA from my mom. She had inherited the IRA from her uncle, and had it titled in her name and her uncle’s name . I was told that the decedent’s name must be included in the account tile ( registration). But, I am not sure if that’s true. And, if it is true, should it be my aunt or her uncle’s name that is included in the registration for the inherited IRA?

It is true.

Your inherited IRA should be registered in your name and your mom’s name. This would show that you inherited the IRA from your mom.
The IRS requires that both the decedent and beneficiary names are included in the account registration for inherited IRAs. This allows them to identify the person from whom you inherited the IRA and helps the custodian or trustee of your inherited IRA to meet IRS compliance requirements for tax reporting.

When you are consulting with your tax advisor regarding the distribution requirements for your inherited IRA to let him or her know that you are a successor beneficiary. Being a successor beneficiary means that you did not inherit the IRA from the owner, and your distribution requirements might be different from those that apply to your mom. See Can a successor beneficiary take distributions over his life expectancy?

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

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