TIDBITS, TRICKS & TRAPS
SUCCESSOR IRA BENEFICIARIES PERMITTED
Under the final required minimum distribution ("RMD") regulations A-4(c) (26 C.F.R. § 401(a)(9)-4), the IRS appears to recognize the ability of an IRA beneficiary to name a "successor beneficiary" to take the distributions in case of his/her death. The successor beneficiary will stand in the shoes of the designated beneficiary and will receive the distributions in the same manner as the designated beneficiary would. This will probably be welcome news to IRA owners and sponsors since it will continue to delay taxation of the IRA assets, although administering the "successor beneficiary" rules seems complicated for any qualified plan with a sizable participant population.
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