Take the Stress Out of Handling IRA Beneficiary Distributions
If your financial organization offers inherited IRAs (sometimes called “beneficiary IRAs”), you probably understand how complex the payout rules have become for these types of IRAs in recent years.
The 10-year rule and eligible designated beneficiaries concepts were introduced in 2020 with passage of the SECURE Act. In February 2022, the IRS released its long anticipated proposed RMD regulations, which provided additional guidance on beneficiary distribution rules, including important clarifications on the 10-year rule. Additional changes to the beneficiary rules may occur once the final RMD regulations are released. The SECURE 2.0 Act also contains multiple provisions that affect both employer-sponsored retirement plans and IRAs.
Beneficiaries have special rules and payout options that depend on several factors, including their relationship to the decedent and whether the IRA owner was taking required minimum distributions (RMDs). Sometimes it’s difficult to track down beneficiaries to let them know that they have inherited an IRA.
Throw into this mix a complicated family situation involving a deceased client’s IRA and your staff may feel overwhelmed and unsure how to distribute the inherited assets.
This is where we can step in and help.
Offering inherited IRAs is a great way to increase your deposit base and grow your IRA program. They may seem challenging and time consuming, but there are many benefits to offering inherited IRAs. You do have options to streamline the beneficiary distribution process and make it less stressful.
At Ascensus, we’ve got you covered.
Don’t Turn Away Beneficiaries, Let Us Help Administer Your IRA Program
If your organization doesn’t offer inherited IRAs or if your staff feels overwhelmed by maintaining inherited IRAs, then our IRAdirect® Fully-Administered Program may be the answer that you’re looking for. We can streamline the process and provide the beneficiary payout options for you. We also have a team of experts, including our ERISA attorneys, who can review escalated beneficiary cases to help determine beneficiary designation.
For all other beneficiary claims, IRAdirect’s Death Notice Wizard will take the guesswork and stress out of administering your IRA beneficiary distributions. Our Death Notice Wizard will walk you step-by-step through the entire process of handling beneficiary distributions and make sure the payouts are appropriate, based on the beneficiary’s options available with the most recent regulatory guidance. You don’t have to worry that you’ve given the beneficiary the wrong payout option or missed a required distribution because our Fully-Administered Program will do much of the work of administering the IRA beneficiary claims for you and your team. IRAdirect eliminates paper forms, offering regulatory compliance logic that catches errors and verifies the accuracy of your tax reporting forms for all your IRAs.
Ascensus helps take the risk out of administering inherited IRAs. It’s what we do, and we do it well.
Learn more about our Fully-Administered Program here.
