01-20-2005, 10:39 PM
Hello All: Here's A little food for the soul
When you designate IRA beneficiaries, consider this approach:
Name your spouse as the primary beneficiary. At your death,
your spouse can claim the inherited IRA as his or her own and
designate your children as the beneficiaries.
Name your children as secondary beneficiaries. This provides
your surviving spouse with flexibility. At your death, if your
spouse has sufficient wealth from other assets, aside from your
IRA, your IRA might not be needed.
In these circumstances, if you have named your children as
contingent beneficiaries, your spouse can disclaim (waive) the
account. Then your children will inherit your IRA.
Name your grandchildren as tertiary beneficiaries, in case your
children as well as your spouse disclaim.
If you have great-grandchildren, you can add them to the list,
in case your grandchildren disclaim.
The person who disclaims can't direct the inheritance. He or
she merely steps aside and the IRA will go to the next person
in line, as specified on the beneficiary designation document.
This plan can result in income tax deferral. Your children and
grandchildren will have longer life expectancies than your
surviving spouse. If your spouse decides that he or she can
disclaim, the younger heirs can stretch out minimum required withdrawals over a longer time period and get more benefit
from the IRA's tax deferral.
This artical is fromFedWeek's Retirement Planning
When you designate IRA beneficiaries, consider this approach:
Name your spouse as the primary beneficiary. At your death,
your spouse can claim the inherited IRA as his or her own and
designate your children as the beneficiaries.
Name your children as secondary beneficiaries. This provides
your surviving spouse with flexibility. At your death, if your
spouse has sufficient wealth from other assets, aside from your
IRA, your IRA might not be needed.
In these circumstances, if you have named your children as
contingent beneficiaries, your spouse can disclaim (waive) the
account. Then your children will inherit your IRA.
Name your grandchildren as tertiary beneficiaries, in case your
children as well as your spouse disclaim.
If you have great-grandchildren, you can add them to the list,
in case your grandchildren disclaim.
The person who disclaims can't direct the inheritance. He or
she merely steps aside and the IRA will go to the next person
in line, as specified on the beneficiary designation document.
This plan can result in income tax deferral. Your children and
grandchildren will have longer life expectancies than your
surviving spouse. If your spouse decides that he or she can
disclaim, the younger heirs can stretch out minimum required withdrawals over a longer time period and get more benefit
from the IRA's tax deferral.
This artical is fromFedWeek's Retirement Planning