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Chapter 4: Inherited Benefits: Advising Executors and Beneficiaries
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Assist the beneficiary with transferring the account to the beneficiary’s own preferred
financial institution if that option is available and desired.
¶ 4.2.02 – ¶ 4.2.04 .
Compute the beneficiary’s required minimum distributions RMDs) using the Road Map
for determining post-death RMDs at
¶ 1.5.02 .Make sure the beneficiary understands the
obligation to take RMDs and help him comply with it by offering to compute the RMDs
and sending annual reminders.
Determine whether there is after-tax money in the inherited plan and if so how it will be
distributed; se
e ¶ 2.2.07 .
If the participant’s estate is subject to federal estate tax, advise the beneficiary regarding
the IRD deduction, how much it is and how to take it; see
¶ 4.6.04 – ¶ 4.6.08 .Make sure the inherited benefits are integrated into the beneficiary’s own estate plan, for
example, by advising the beneficiary to name a successor beneficiary for his interest. See
¶ 1.5.12 (A).