Beneficiary Options – Distributions
General Rules for Taking Beneficiary Distributions
Understanding beneficiary options and distribution requirements is vital to designing an estate plan that will fit your wealth distribution needs.
As the beneficiary of a retirement plan, knowing that IRA assets can continue to grow tax-deferred would be valuable information. This growth is achieved by leaving assets in the original account or transferring them to an inherited IRA registered in the name of the decedent for your benefit.
While all inherited retirement accounts are subject to Required Minimum Distribution (RMD) rules, careful planning can help maximize the potential for long-term growth.
The timeframe for making decisions depends on a variety of factors. Should an heir receive a beneficiary distribution, these would include:
- The relationship to the account owner
- The type of account
- Plans for the assets.
The following guides can help you make those plans and meet the IRS deadlines.
- IRS Publication 590-b
- IRS Publication 590-b – Which Table Do You Use To Determine Your Required Minimum Distribution?
- IRS Publication 590-b – What Age(s) Do You Use With the Table(s)?
To help you better understand the ins and outs of beneficiary distributions, we have compiled a short glossary that covers:
| Five Year Rule |
Non-individual beneficiary |
| Life Expectancy |
Qualified Disclaimer |
| Life Expectancy Tables |
Required Minimum Distribution (RMD) |
