A successor beneficiary is someone who inherits an individual retirement account (IRA) from a prior beneficiary rather than directly from the original owner. That second-generation inheritance can affect distribution deadlines, annual required minimum distributions (RMDs) and tax-planning considerations. Because of these implications, it’s especially important to understand the original beneficiary’s status.
A financial advisor can help you plan ahead for retirement and take the rules, options and taxes surrounding IRAs into account.
Who Is a Successor Beneficiary and How the 10-Year Rule Applies
As we mentioned above, a successor beneficiary…
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