Multiple individual beneficiaries. If as of September 30 of the year following the year in which the owner dies there is more than one beneficiary, the beneficiary with the shortest life expectancy will be the designated beneficiary if both of the following apply.
All of the beneficiaries are individuals, and
The account or benefit has not been divided into separate accounts or shares for each beneficiary.
Separate accounts. A single IRA can be split into separate accounts or shares for each beneficiary. These separate accounts or shares can be established at any time, either before or after the owner's required beginning date. Generally, these separate accounts or shares are combined for purposes of determining the minimum required distribution. However, these separate accounts or shares will not be combined for required minimum distribution purposes after the death of the IRA owner if the separate accounts or shares are established by the end of the year following the year of the IRA owner's death.
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.
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