Designated Beneficiary
Definition A designated beneficiary is an individual (person) beneficiary whose is designated as beneficiary of a qualified plan account, 403(b) account, 457(b) plan or IRA,
February 28, 2023
Beneficiary Options- Roth IRA Vs. Traditional IRA. Are they the same? It depends.
Traditional IRAs: The distribution options for beneficiaries of a traditional IRA depend on whether the IRA owner dies before the required beginning date (RBD).
Roth IRAs: Because Roth IRA owners are not subject to the required minimum distribution (RMD) rules, there is no RBD for Roth IRAs. Therefore, the distribution options for Roth IRAs are usually the same as those that apply to a Traditional IRA when the owner dies before the RBD. The IRA agreement must be consulted to be sure.
Some IRA agreements limit a spouse beneficiary’s options to treating the Roth IRA as his/her own, instead of choosing to treat the account as an inherited Roth IRA.
For quick reference guides and white papers on the beneficiary options, please visit https://www.irapublications.com/
Definition A designated beneficiary is an individual (person) beneficiary whose is designated as beneficiary of a qualified plan account, 403(b) account, 457(b) plan or IRA,
Definition The beneficiary 10-year rule is the maximum period that certain beneficiaries may keep inherited retirement accounts in a beneficiary account. Watch/listen to a video
Definition For beneficiaries who inherit retirement accounts, a common question asked is “What is the 5-Year Rule for beneficiaries?” The beneficiary five-year rule is the
An eligible designated beneficiary is a designated beneficiary who, at the time of the IRA owner or plan participant’s death, is : A. the surviving
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