What is a Beneficiary IRA/ Beneficiary Roth IRA?
When someone (other than a spouse) is the beneficiary of a deceased person’s IRA, they need to open aBeneficiary IRA. Spouses can receive money from their deceased spouse in a regular IRA in their own name. Funds in a deceased person’s Traditional IRA would need to move to a regular Beneficiary IRA. Funds in a deceased person’s Roth IRA would need to move to a Beneficiary Roth IRA. Funds cannot be liquidated and distributed in the deceased person’s IRA. They must move to a Beneficiary IRA first. One account holder/one signer. Requires an IRA Beneficiary Designation form. Also known as ‘Inherited IRA’. Consult your tax professional or CPA for Required Minimum Distribution (RMD) calculation about your Beneficiary IRA.
