StarSong
Awkward is my Superpower
- Location
- Los Angeles Suburbs
My husband and I are probably like a lot of you. IRAs came about during our working years and our parents, friends, financial advisors, politicians, etc., strongly recommended this vehicle for retirement savings. They were all the rage. 401ks either didn't exist yet or were pretty rare. Pension plans were disappearing. So IRAs were the way to go.
Every spring DH and I duly funded personal IRAs. Did that for a long time. Are you with me so far?
Recently my much-beloved father-in-law passed away. Included in his estate were two smallish IRA balances, both held at the same financial institution. Total $12K maybe. Each was to be distributed to three heirs.
My friends, I am here to tell you that the process of getting money from an inherited IRA is not for the weak in spirit. The paperwork is not to be believed. (You have to create a new IRA then roll the money into it, even if you want to cash it out.)
Freshs set of paperwork for each IRA and each heir. So six sets of paperwork all told. Ugh...
Really and truly, we sold the houses in these estates and distributed those funds with far less ado.
While hubby and I aren't about to cash in our IRAs just to avoid possible paperwork issues for a surviving spouse or children, we are going to consolidate our IRAs as timed investments come up for renewal. Leaving a couple of sets of IRA paperwork to wade through upon our demise will be much less onerous than a dozen or more.
Just offering the benefit of my experience and sending out a word to the wise.
Every spring DH and I duly funded personal IRAs. Did that for a long time. Are you with me so far?
Recently my much-beloved father-in-law passed away. Included in his estate were two smallish IRA balances, both held at the same financial institution. Total $12K maybe. Each was to be distributed to three heirs.
My friends, I am here to tell you that the process of getting money from an inherited IRA is not for the weak in spirit. The paperwork is not to be believed. (You have to create a new IRA then roll the money into it, even if you want to cash it out.)
Freshs set of paperwork for each IRA and each heir. So six sets of paperwork all told. Ugh...
Really and truly, we sold the houses in these estates and distributed those funds with far less ado.
While hubby and I aren't about to cash in our IRAs just to avoid possible paperwork issues for a surviving spouse or children, we are going to consolidate our IRAs as timed investments come up for renewal. Leaving a couple of sets of IRA paperwork to wade through upon our demise will be much less onerous than a dozen or more.
Just offering the benefit of my experience and sending out a word to the wise.