beneficiary

L1: beneficiary If my client dies during the 5 year period, it is my underestanding that the beneficiary can choose not to continue with the plan. My client is 56 and his wife is 48. If she decides not to continue with his plan, could she start her own plan with a different calculation and a different annual need? If she does continue, would she contine until the end of his five year period, or would the distributions need to be continued until she reaches 59.5?

Thanks2007-09-20 07:00, By: Charlie, IP: [70.154.66.171]

L2: beneficiaryCharlie:
If your scenario develops, simply use the “inherited IRA” rules and the beneficiary can take as much or as little and make changes as needed without the 10% penalty. If she assumes the IRA then it is hers and she is under normal IRA rules, including having to use 72(t) for penalty-free withdrawals.
Become very familiar withIRS Pub 590 and information from your IRA custodians on this issue.
Jim2007-09-20 07:06, By: Jim, IP: [24.252.195.14]

L2: beneficiaryIn the area of “INHERITED IRAs”, there is no such thing as “SIMPLY”. To quote a former IRS Commissioner, when he was asked to comment on the rules for taxing the recipient of one of the “famous” home run balls, “these rules are as complex as the ”infield fly rule is in baseball” “. The same holds true in this area. When the time comes, get professional tax guidance.2007-09-20 12:23, By: dlzallestaxes, IP: [151.197.206.118]