Is an IRA held in the name of an estate required to take a minimum distribution?

Dec 07, 2017
askacpaicon

Is an IRA held in the name of an estate (principal has passed) required to take a minimum distribution?

It depends on whether death occurs before or after the required beginning date for mandatory IRA distributions. When an IRA owner dies, IRA ownership is controlled by beneficiary designation. If the IRA in question is held in the name of the estate, the estate must have been named as beneficiary. This is generally a bad idea because distributions could be forced to occur far faster than with individual beneficiaries.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Thomas N. Alvaré, CPA, is managing principal with JFS Wealth Advisors in Doylestown, Pa.

Pennsylvania CPA Journal

Read the latest from the Pennsylvania CPA Journal online or via the mobile app and digital edition.

Read More

CPA Now

Get the latest info on professional trends, management, and leadership skills on CPA Now.

Read More

Premier Sponsors

Platinum Sponsors

Gallagher Bollinger Logo
CPACharge


Silver Sponsors

Paychex logo
Capstan Logo
epsa USA


Bronze Sponsors

sage-logo_bright_green_rgb_2018_28469
TaxConnex_logo_TM_tagline2019
botkeeper1
Fox School of Business, Temple University


Interested in becoming a sponsor? View packages >