How to Title an Inherited IRA

August 26, 2006

When inheriting an IRA, it is important to make sure you get the title right. Here’s a suggestion I saw in the Ask Encore section ($) in today’s Wall Street Journal:

1. The name of the person who died

2. The word “IRA”

3. A statement that it is “for the benefit of” the heir.

The article then gave an example:

John Smith IRA (deceased Aug. 19, 2006), F/B/O Joseph Smith, beneficiary

4 responses to How to Title an Inherited IRA

  1. Thank you for this.

    If only one person benefits from finding this and knowing how to do it correctly they should be forever grateful to you.

  2. YES.

    Also, if you are inheriting an IRA or planning on passing your IRA on to others, it may be worth your while to read the cheesily named but otherwise informative “Parly Your IRA Into A Family Fortune” by Ed Slott. There’s a lot of self-promotion in the book, but there are a few sections that are invaluable.

    The section on titling an IRA is very useful, as is the section on the IRD deduction.

  3. Ron Caballero, CLU, CSA September 14, 2006 at 10:49 am

    Is the date of death a REQUIREMENT? A client is having trouble with the custodian who insists that it is NOT.

    If possible, please reply directly to:

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