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#2214218 - 05/22/19 08:13 PM IRA beneficiary
Compliance Action Subscriber 1226 Offline
100 Club
Joined: Sep 2015
Posts: 151
Owner of IRA has died and the POD of the account is her daughter - the amount in the IRA is less that $500 - she wants to close the IRA - should we report the withdrawal under her SS#? - she says she will not have to pay taxes on the funds because it is less than $500

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Deposits and Payments
#2214240 - 05/22/19 10:11 PM Re: IRA beneficiary Compliance Action Subscriber 1226
BrianC Offline
Power Poster
BrianC
Joined: Nov 2004
Posts: 6,207
Illinois
The bank is not in a position to give tax advice nor does it change its processes for a death distribution based on what a customer claims their tax situation is.

Process the death distribution according to your procedures and send the beneficiary a 1099-R at the appropriate time. What the beneficiary does or does not do with that information is between them and the IRS.
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#2214734 - 05/31/19 11:06 PM Re: IRA beneficiary Compliance Action Subscriber 1226
el guapo Offline
Gold Star
el guapo
Joined: Jul 2004
Posts: 345
It's odd that you would refer to an IRA beneficiary as "POD" and even more odd that there is a question as to how a distribution to an IRA beneficiary would be reported. I think you (the bank, not you personally) need to take a bigger step back and review your overall IRA procedures and who wrote them. This should not even be a question if you are an IRA custodian.

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