williamg wrote:Just curious about the actual splitting. Do you know how they split holdings to be fair to each beneficiary? Timing of sales and such would seem to be a factor in ensuring you could have two new accounts that at least started out as equal dollar wise.
I split my mother's IRA 5 ways between 5 siblings ASAP after her death.
Set up 5 Schwab inherited IRA accounts and then sent a letter of instruction to Schwab on how to do the split from 1 to 5.
It was mostly mutual funds so shares were split 5 ways equally. A few assets weren't good candidates
to split, so I divvied those up after discussions with my siblings and just made sure the total account values on
the date of split were equal. So everybody on day one was equal with an almost identical diversified portfolio.
A jointly owned inherited IRA sounds like a real potential mess.
People have very different ideas about what to do with inherited money.
I certainly wouldn't do the 50% withdrawal while the account is still in joint ownership.
If it's like a regular joint account, the owners would both have rights to the remaining balance, even though one received the proceeds from the 50% distribution.