There’s nothing routine about handling an IRA beneficiary claim after an IRA owner passes away. The forms may be standard, but the situation never is. Behind every beneficiary designation is a family sorting through loss, and a financial organization trying to help them navigate an unfamiliar and time-sensitive process.
Building connections is at the heart of everything we do at Ascensus, whether we’re helping financial organizations serve their communities or working behind-the-scenes with our IRA administrative platform, IRAdirect®. Our new partnership with Janusea is about building more core connections.
On paper, beneficiary claims seem simple: someone passes away and your financial organization gives the money to whomever is listed on the beneficiary designation form. But in real life? There are all kinds of curveballs.
While you’re not legally required to send out updated IRA documents for these new rules until December 31, 2026, or a later date prescribed by the Treasury Secretary, it can be a smart move for your organization. Here’s why it matters and what you should be thinking about.
In the financial services industry, compliance is key, and when it comes to IRAs, withholding notice requirements are one area you don’t want to overlook. If a financial organization is found to be noncompliant by the IRS for not following federal tax withholding requirements on IRA distributions, it can result in hefty penalties.
