Roth IRA, from owner, to bene, to estate, complian

Posted By: Mackenzie Cobb

Roth IRA, from owner, to bene, to estate, complian - 08/31/18 01:34 PM

If this is better suited to another thread let me know, and I'll move it.

We had a customer open a Roth IRA in 2003. He listed his wife as beneficiary. He passed in 2011. His wife never claimed the IRA, and she passed in 2015. Their daughter was the personal rep. She did not know about the IRA until 2018, when the IRA was listed as abandoned property and she received a letter.

Now the daughter has come to close the IRA. An estate has been created, and the IRA was moved from his name, to the estate of his wife. I have a Beneficiary IRA from him, to the estate of his wife, with the daughter as the personal rep. I am trying to close the account, but I do not know how to code it to close. As it is a Roth IRA, I don't believe there is an option for death distribution. My options are for Regular Distribution after 5 years, or Early Distribution.

What it all boils down to is- What date do I go by? Do I go by the original opening date of the Roth, the date of death of the original owner, the date of death of the estate owner, or the date that the new Estate IRA was opened? Does the fact that it appeared on the abandoned property list affect the dates in any way, particularly because the daughter did not know it existed, so she could not retrieve it within the 5-year period?

We've been scratching our heads with this one, and any insight is appreciated.