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#2063813 - 02/11/16 03:10 PM IRA Interest
parr04 Offline
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Joined: Aug 2004
Posts: 381
oklahoma
Is there a requirement that interest accruing on an IRA must stop with the death of the owner?

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Deposits and Payments
#2063941 - 02/11/16 07:24 PM Re: IRA Interest parr04
BowlingQueen Offline
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Joined: Mar 2007
Posts: 2,920
Wisconsin
I have never heard of a requirement that states that interest must stop accruing on an IRA after the death of the IRA owner. However, once you have confirmed knowledge that the IRA owner is deceased, you must stop reporting any new activity under their SSN. Most often, a "dummy" account (or Beneficiary IRA) would be set-up for each named living beneficiary. The funding would be by transfer of the portion (percentage) of the IRA balance (including accrued interest) that they are entitled to, if there are multiple named beneficiaries. Some banks have a system that will automatically do this and others (like mine) have to be done manually.

Hope that helps.
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#2063947 - 02/11/16 07:36 PM Re: IRA Interest BowlingQueen
parr04 Offline
Gold Star
Joined: Aug 2004
Posts: 381
oklahoma
thanks..

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#2064031 - 02/12/16 10:59 AM Re: IRA Interest parr04
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Quote:
Is there a requirement that interest accruing on an IRA must stop with the death of the owner?


Definitely not.
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In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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