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URL:  http://boards.fool.com/dingue-changing-beneficiaries-happens-all-the-12836758.aspx

Subject:  Re: non spouse IRA beneficiary Date:  7/2/2000  12:12 PM
Author:  MichaelD50 Number:  37090 of 120819

Dingue:

Changing beneficiaries happens all the time - your question would typically be for the election of a widow(er) to name a new beneficiary in lieu of a deceased spouse. You should know that, it your spouse is still living, you will need the spouse's written consent to effectively change the beneficiary.

Your daughter will make withdrawals from the IRA using the method you elected to determine your own minimum withdrawals. You can search this board for discussions about that, or simply ask the Trustee of your IRA and receive an exact, specific answer for your specific circumstances. An IRA is intended to provide for the retirement benefit of the owner (and the owner's surviving spouse). The IRS will want to see the IRA cashed out for any other beneficiary. That is one major difference from the Roth IRA. Generally, if you are not recalculating your life expectancy, your daughter will withdraw the IRA over your remaining actuarial life, otherwise she will withdraw the IRA within two years of your death. She could elect to cash it out the day of your funeral.

Some Trustees attempt to force beneficiaries to cash out their IRA's, and some beneficiaries cash out the IRA faster than would be required. Sit down with your Trustee and verify their policies, and then sit down with your daughter and discuss her best interests and options.

Your IRA would usually be known as "your name" IRA for the benefit of "daughhter's name" after your death.

Mike

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