Inherited IRAs and Beneficiary Information

By Elsie Dudukovich0 Comments

With careful planning and investing, your IRA can provide for your retirement and for your loved ones.

Setting up your beneficiaries
Make sure to add beneficiaries to your IRA. Your IRA should have a primary beneficiary or beneficiaries.  Many people also choose to set a contingent beneficiary or beneficiaries in the event the primary beneficiary or beneficiaries precede the account holder in death.  If you need guidance ensure you are seeking the advice of a financial advisor or CPA.

Be sure to use correct, up to date names and contact information for your beneficiaries.

Make sure the percentages work out exactly to 100 percent if there is more than one primary and/or contingent beneficiary.
Inheriting an IRA
Handling an inherited IRA can be complex and challenging.  It is often in the best interest of the beneficiaries to seek guidance from a financial advisor who knows how to handle these matters.  It can also be helpful to find an advisor who is familiar with the types of alternative assets held in a self-directed IRA. 

Deborah Jacobs’ article “Five Rules For Inherited IRAs” can be a good starting point to getting educated on the complexity of the options associated with an inherited IRA.