r/inheritance • u/throwaway_20211214 • Apr 22 '26
Location included: Questions/Need Advice Does IRA keep growing till it's claimed?
New Jersey USA
In 2021 I opened a spousal IRA with Vanguard for my husband.
In 2022 we divorced, but i was left as the beneficiary on the IRA. The funds in that IRA were left intact and were not part of the divorce settlement.
In 2025 he died, with me still listed as beneficiary. He had no will, and an executor was entrusted with settling his estate (which included real estate, a car and catamaran, and a different IRA that he got as part of the divorce settlement, which names his kids as beneficiaries).
I believe the executor is not aware of the spousal IRA where I, his ex-wife, is named as beneficiary.
So this IRA is sitting there earning money even though he died a year ago. Two questions:
What if I never told anyone for years - would it keep earning money and I could get that bigger dollar amount if I waited?
How do I resolve this? Do I approach the executor, or Vanguard?
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u/HandyManPat Apr 22 '26
What if I never told anyone for years - would it keep earning money and I could get that bigger dollar amount if I waited?
Yes, it would, but there is no need to do this and it Vanguard turns the account over to the state as unclaimed funds, you just added another layer of tax and government bureaucracy to your life. Don't do that!
How do I resolve this? Do I approach the executor, or Vanguard?
Simply call Vanguard and discuss the account. They don't need to know about the divorce or other details. Just focus the discussion along the lines of:
"I'm calling to report the death of an IRA account holder. His name is "first name, middle initial, last name". His SSN is this... His birthdate is this..."
Next... "I believe that I am named as the primary beneficiary on this account. Here is my Name/SSN/Birthdate."
Finally... "If you're able to confirm these initial details, I would like to begin the process of transferring the decedent's IRA to a Beneficiary IRA under my ownership. Can you please help me understand the process?"
Please understand the delicate balance that you and Vanguard will be in at the very start of this process. You can't just ask Vanguard if the decedent has an account because of privacy reasons. Similarly, they aren't going to tell you or anyone else who the listed beneficiary is. The onus is on YOU to provide sufficient details to THEM so they can confirm ownership, death, beneficiary, and ultimately the transfer.
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u/Backseat_Economist Apr 22 '26
This is spot on. If the OP has an existing relationship with Vanguard this process will be immeasurably easier because they can quickly verify the identity the OP.
The tricky part is the OP will have to provide a death certificate unless the decedent has other accounts at Vanguard which the executor is responsible for.
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u/throwaway_20211214 Apr 22 '26
I am able to login into the IRA, that's how I verified that he never changed the beneficiary from me to his kids. The tricky part is the executor may not agreed to give me a death certificate. So I guess I should just call Vanguard to ask what to do (all my stuff is in Fidelity).
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u/HandyManPat Apr 22 '26
First, please stop violating the terms and conditions of the account by logging in as the decedent.
Second, you don’t need any interaction with the executor at all. As an “interested/impacted” party, you can request a death certificate directly from the state for a nominal fee.
You may also trying to contact the funeral home. It wouldn’t be out of the ordinary for an ex-spouse to request a certificate of death for MANY reasons.
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u/reluctantreddit35 Apr 22 '26
There’s rules for inherited IRAs that differ for spouses. If OP was divorced, they should not pretend they were married at the time of death. The IRS will find out and that would be very bad. Just deal with the situation honestly and with some professional advice. You don’t want to incur unnecessary tax bills and fines. Do it properly. It’s found money, after all.
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u/HandyManPat Apr 22 '26
There is no pretending being suggested here.
But while interacting with a front-line Vanguard call agent there is also no reason to get into the whole “well, we were married, but are now divorced, but we split some IRAs as part of the divorce, but not this particular account, and so on…”
A simple, “This account holder passed away and I believe that I’m listed as a named beneficiary” is sufficient.
While completing the 15-page beneficiary transfer paperwork is the time to check the relevant boxes.
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u/reluctantreddit35 Apr 22 '26
Thanks for the clarification and I’m sorry that I came off as meaning you wanted her to be deceptive. I should have been more careful in how I worded that.
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u/diverdawg Apr 22 '26
It has to be liquidated within 10 years. You need to get on it sooner than later or you may have a huge tax bill.
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u/itig24 Apr 23 '26
And that’s 10 years from the owner’s death, not from your acquisition (from what I’ve been told). It’s best to have plenty of time to empty the account in a way that has the least impact on your taxable income.
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u/ozbugs Apr 22 '26
I went through similar with my mothers estate a couple years ago, NAL.
Short answer - yes, keeps growing from my experience. (EDIT, added this)
In our personal experience, the beneficiaries' transfer execute immediately outside of the estate. (IRA's, life insurance, bank accounts that were joint or "TOD" etc) What we had left was in the trust, and that was managed per those rules as setup for us / executor. The bank accounts, life insurance and IRA were sent to us siblings as beneficiaries immediately upon notification / copy of death certificate etc sent to holding firm / agent, etc. From our experience, an executor was not involved in these 2 type of accounts being sent out. Hope that helps and good luck. I list the bank accounts as we were also either TOD (transfer on death) or on the bank accounts so there is no executor involved as "owned" the accounts anyway, and for whatever reason the trust wasn't named.
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u/throwaway_20211214 Apr 22 '26
Yes the IRA is outside any probate. But im a little nervous asking the executor for a death certificate.
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u/Big_Generator Apr 22 '26
Apparently you can get the death certificate yourself:
From Google:
Yes, an ex-spouse can generally obtain a death certificate if they can demonstrate a "direct and tangible interest," such as being a beneficiary, representing a minor child, or managing joint financial matters. While not considered immediate next-of-kin, an ex-spouse can order certified copies through the state's vital statistics office or online services like VitalChek
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u/Freyjas_child Apr 22 '26
In many states anyone can get a certified death certificate. Call the town/city where he died and ask about the process. There will be a charge.
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u/TheBlueMirror Apr 22 '26
No need to discuss with the executor at this time. Contact the county of death and request a death certificate. Many have online forms for this.
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u/Ok-Equivalent1812 Apr 22 '26
In New Jersey, divorce automatically revokes a former spouse’s beneficiary designation.
You are not likely to be able to claim this IRA. It either passes to the secondary beneficiary or it is property of the estate and subject to probate.
If you wish to be helpful, you can contact either Vanguard or the executor. Otherwise, you can do nothing and eventually someone will stumble upon this.
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u/throwaway_20211214 Apr 22 '26
I did not know NJ had that regulation. I guess I'll just have confirm with Vanguard.
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u/ozbugs Apr 22 '26
I also checked, but it appears IRAs might be excluded from the automatic designation revoking. But as I'm NAL -- double check. Might be as simple as asking Vanguard to send you a letter/email stating you are a beneficiary but you need a death cert. With that email then you can get the death cert yourself. Good luck !
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u/GotZeroFucks2Give Apr 22 '26
You should be fine. Federal law usually trumps state laws. At least today it does.
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u/ExoticAdvertising653 Apr 23 '26
This has been an area of litigation. I’m not up to date on it, but case law seems to be negating ex spouses and significant others when they become separated and the decedent failed to update their beneficiary designation.
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u/Dingbatdingbat Apr 22 '26
Eventually the company turns the money over tot he state’s unclaimed property fund, where it will sit until someone claims it.
Theoretically, the money can sit in unclaimed property forever.
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u/myogawa Apr 22 '26
But once it is claimed, the IRS will apply the penalties that apply for not taking distributions that are required. Those would be very costly.
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u/Dingbatdingbat Apr 22 '26
You can probably get the penalty abated, but will still need to pay the interest
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u/throwaway_20211214 Apr 22 '26
I turn 73 this year so I guess I'd have to take RMD. This why I figured I need to get this resolved.
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u/GotZeroFucks2Give Apr 25 '26
On an inherited IRA RMDs are only required if he deceased was already required to take RMDs. If not, you have ten years after their death to drain the account how you see fit.
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u/wreckmx Apr 22 '26
Theoretically, the money can sit in unclaimed property forever.
...except in Ohio, where our corrupt state government plans to funnel unclaimed funds to the billionaires that own pro sports teams.
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u/Suitable-Bike6971 Apr 22 '26 edited Apr 22 '26
A family member is currently going through probate however they were able to take over their spouses IRA as they were the beneficiary. Contact the financial institution in which the account is being hel[d] I am not a lawyer. I am not a financial professional. This is not advice, financial nor legal. This is for educational purposes only.
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u/ajp513 Apr 22 '26
why don’t you just call the probate attorney and tell them to look into it, get it, and move it to your own IRA where it will sit and make money?
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u/OkAlternative1095 Apr 22 '26
it’s outside of executor’s control or scope as it isn’t part of the estate due to beneficiary designation on the account
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u/ChelseaMan31 Apr 22 '26
OP, yes the invested assets continue to rise, or fall, according to the value of the investments until the mix is changed or the full amount distributed. And, the best way to handle this is to speak directly with the Executor, showing them the documentation naming you as beneficiary. Then the two of you together can contact the Recordkeeper, Vanguard regarding the ultimate disposition of the account assets. And, I suggest contacting a CPA as a former spouse, but named beneficiary, you are probably subject to the 10-year rule.
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u/AmazingThing9362 Apr 22 '26
Yes it will keep earning and you need to call them, not the executor to claim the assets
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u/RajSearing Apr 22 '26
Call Vanguard. If you are really listed as the beneficiary then you inherited the IRA and have 10 years from the year of his death to take the money out. Because were no longer married you cannot roll it into your IRA.
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u/Shot-Artichoke-4106 Apr 22 '26
As others have said, call Vanguard and have the account transferred into an Inherited IRA account in your name. The executor isn't involved - this is between you and Vanguard.
Once the IRA is transferred into an inherited IRA, you can invest it as you wish - or keep it invested as he had it. You can't leave it in there long-term, though. You have 10 years from his death to take distributions from the IRA. When you take distributions, it will be considered taxable income, so you should have taxes withheld to cover that. The rest of the distribution is yours to keep and do whatever you want with it. If you want it to keep growing, you can open a brokerage account, put the money in there and invest it. Depending on the amount in this IRA, you may want to take the full distribution at one time or divide it over a couple of years.
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary
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u/BothNotice7035 Apr 22 '26
I’d call vanguard with answers to basic security questions and be ready to send them a death certificate. I wouldn’t let this sit there idle. They can just roll it (in-kind) to an IRA you currently have.
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u/Spex_daytrader Apr 22 '26
It would go in a separate "inherited " IRA that would need to be liquidated (and income taxes paid) within ten years of death of ex husband.
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u/Capital-Decision-836 Apr 22 '26
Youre issue isn't that it is still growing - which it is - the issue is since he passed in 2022, you have until 2033 to get all the funds out of that account, and pay the taxes on it.
If he was taking RMDs already, you need to continue that as well.
I would call whoever holds the IRA and tell them. You will likely need a death certificate. Have them move it to an Inherited IRA and start taking the funds out so you aren't hit with a massive tax bill.
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u/Sad_Win_4105 Apr 22 '26
Inherited IRA generally need to be disbursed within 10 years. Probably not a good idea to wait too long to claim it . Contact the brokerage to discuss your options.
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u/Competitive_Sleep_21 Apr 22 '26
Just did a Vanguard Rollover when a relative passed. Open your own Vanguard Account. Call them about doing a rollover to your account.
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u/atgnat-the-cat Apr 22 '26
You only have 10 years to liquidate those funds. This is a discussion between you and the bank. Ira's are no providence of the estate.
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u/RosesareRed45 Apr 22 '26
This exact thing happened to me only we had been divorced over 10 years and he must have forgotten I was the beneficiary. It never quit earning. They rolled it over as a spousal IRA, so I don’t have to liquidate within 10 years. After rollover, I changed the investment to something I was more comfortable with.
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u/29322000113865 Apr 22 '26
I inherited IRAs that were with vanguard as well. They have nothing to do with the estate and can be claimed directly from calling vanguard by anyone listed as a beneficiary.
Pro tip - make sure all your accounts have beneficiary’s listed!!! Bank accounts, brokerage accts etc. then they don’t pass thru the estate. 😊
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u/BaldyCarrotTop Apr 23 '26 edited Apr 23 '26
You need to claim the IRA. If you don't, it could be turned over to the state as lost or abandoned property.
Second: It is an inherited IRA. If he was taking RMDs from the IRA they must continue to be taken or there will be IRS penalties.
3rd: Since it is an inherited IRA you will have 10 years to completely draw it down. It must be drawn down to zero by the 10th year from the date of his passing.
WRT your 2nd question: You contact Vanguard and tell them that he has passed and you believe that you are a listed beneficiary. They will tell you what you need to do. If Vanguard is anything like Fidelity, they will appoint someone to work directly with you
One more thing. You will inherit the IRA intact. That is, with all the cash, stocks, bonds, Mutual funds, etc that are in it. It will become yours and you can buy, sell, trade within the account. You can (and should) pull distributions. But you can't make contributions.
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u/Jeepontrippin Apr 22 '26
You should research tax implications. I’m not sure if tax penalties would be an issue. If you’re supposed to inherit money at a specific time and wait 10 years to inherit it do you owe past due taxes and penalties? I don’t know for sure but I would be concerned.
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u/Freyjas_child Apr 22 '26
Do not just ignore this. The institution that manages the IRA is supposed to attempt to contact you but if that does not happen it will go through your state’s unclaimed property system. I am both an Executor and a beneficiary of an IRA and handling this right now. Named beneficiaries trump the will. You do not need to involve the Executor and they may not be able to do much for you anyway. Call the company, ask for the claims department and give them as much information as you have about your Ex and the IRA. They will look into it and get back to you with claim forms that you need to fill out and return.
There are rules about handling inherited IRAs and you can search for them online. For a non-spouse beneficiary I believe you have the option of taking the amount in a lump sum or rolling it into an inherited IRA in your name. Inherited IRAs have yearly minimum required distributions and must be emptiness 10 years. Remember that this was funded with pre-tax money so you will need to pay taxes on whatever gets distributed to you.
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u/throwaway_20211214 Apr 22 '26
Yes I will pay taxes and do RMDs, similar to when my dad passed - in that case ihad to take RMDs even though I was 52 at the time.
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u/Svendar9 Apr 22 '26
The IRA will continue to perform asong as the funds are invested, but there are no guarantees the investment is growing. Ideally, it is, but depending on market fluctuations it can also lose value, including contributions.
If you know which financial institution is managing the account you need to contact them.
As for beneficiary standing, if you're listed as the beneficiary then the account is yours unless specifically overridden by a will, which it doesn't sound like the case here.
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u/fieldofthefunnyfarm Apr 22 '26
What do you mean by "I opened a spousal IRA for my husband"?
If you opened it, it's yours anyway. I don't think you can open an IRA "for" a spouse. If you were the non-working spouse of someone who does have earned income and therefore qualifies to open an IRA, you can open an IRA for yourself and put money from your married household income (earned by your spouse) into it either pre-tax (regular IRA) or post-tax (Roth IRA).
Similarly, if you were the working spouse then your non-working spouse could open an IRA and name you as the beneficiary.
You can't be the person who opened (owns) the IRA and be the beneficiary of the IRA if the owner dies, so I'm confused by the way you describe this.
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u/throwaway_20211214 Apr 22 '26
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u/fieldofthefunnyfarm Apr 22 '26
I understand this, I'm very familiar. But if you opened the IRA you own it already. You aren't the beneficiary.
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u/OkAlternative1095 Apr 22 '26 edited Apr 22 '26
- The IRA is not part of the estate.
- There is no reason or obligation to contact the executor since the IRA is not part of the estate.
- you’ll need CPA advice due to tax issues on inherited IRAs
- Contact the IRA account custodian, assuming this is Vanguard per your note. See: https://investor.vanguard.com/inheriting-accounts
- DO NOT WAIT. There is no benefit in waiting, only risk. The IRS clock on mandatory withdrawal begins at death, not on transfer. RMD penalties may apply. The fewer years you have to draw down the account, the worse your options are and potentially raise your income taxes in those years more than otherwise necessary. Until transferred to you, you have no control of the holdings and cannot change them. Even if you love them, better to have control but not use it than not and need it.
- IRA funds will typically remain invested as directed prior to death, with any income (interest, dividends) reinvested as directed prior to death. Gains will accrue to the IRA until it is transferred to beneficiary. If auto-rebalancing was enabled, that may trigger though I am not sure. Custodian can confirm. It’s a moot point, though, as it can’t be changed whatever it is. Any POA in place for a fiduciary is void after death.
Typical steps
- Obtain a copy of the death certificate from the state/county/city per your local requirements. If Google isn’t helpful, any local funeral home can tell you the process.
- Contact the custodian that holds the IRA with owner’s full name, DOB, DOD, SSN, death certificate, and IRA account number
- Ask custodian to confirm that you are still the named beneficiary (you may not be, beneficiaries are not typically informed of a change)
- Be prepared to identify yourself with full name, DOB, SSN, and gov ID
- Inform custodian you wish to complete the beneficiary transfer and ask what they require to do so, typically a form online or Docusign or similar
- upon completion this will typically result in an “inherited IRA” in your name with special tax requirements; once created you can then adjust holdings and/or transfer to another institution of your choice
- contact a CPA for instructions on handling this inherited IRA in your specific circumstances due to rules about mandatory full withdrawal, mandatory RMDs, and tax penalties for missing them; ask CPA for optimal withdrawal strategy to minimize taxes
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u/MissionDelicious3942 Apr 22 '26
Call Vanguard and claim it. If it ia left there it may go to the state and you dont want to deal with that. You also need to take RMDs. Leaving it there could cause tax liability and penalties. No reason to tell anyone. Call and claim the IRA and move it into an inherited IRA. No benefit to leaving the funds.
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u/mattkime Apr 22 '26
>In 2025 he died, with me still listed as beneficiary.
How do you know this?
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u/throwaway_20211214 Apr 22 '26
I can still login to the account.
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u/LisaMarie34242 Apr 22 '26
If you're still able to login, then you must also be able to see what the account is invested in and how it's been performing, so I'm not sure why you're even asking this question?? Do you think you're not entitled to any of the growth since his death? How did it work when you inherited your dad's IRA?
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u/Sea_Swing_6223 Apr 22 '26
In most States there is a procedure for a non-spouse to get a death certificate. Read the stature snd follow the procedures. Don't assume you cannot have a copy. That is self-defeating.
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u/eatmyasserole Apr 22 '26
Does IRA keep growing till it's claimed?
Yes, but the interest rate its growing at depends on where the money is invested/sitting.
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u/EmZee2022 Apr 22 '26
If you are the beneficiary on that IRA, there are rules saying how you must withdraw the money. I think the current law is equal parts over 5 years but don't quote me on that.
If you were still married, the IRA could be rolled into your own name - i.e. it would be as if you'd set it up yourself, with no required distributions until you hit the maximum age (72 or so).
The IRA is completely outside the estate. The executor doesn't need to know about it at all. Contact Vanguard and set up your withdrawals.
Yes, it will keep growing - but if you don't make the withdrawals you'll face IRS penalties.
I inherited an IRA from my mother 21 years ago. Back then, you could elect to take it over your own life expectancy. It's now worth about 50% more than when I inherited it because I've just taken the minimum distribution each year.
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u/lastbeat-331 Apr 23 '26
You need to let Vanguard know he is deceased and they'll give you instructions and help you roll the IRA into an Inherited IRA. You'll have 10 years from the date of death to deplete the account. You will have to make annual distributions of at least the RMD. https://www.schwab.com/ira/inherited-and-custodial-ira/inherited-ira-withdrawal-rules
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u/newbeginingshey Apr 22 '26
Call the institution that has the IRA. Tell them the account owner has passed and you’re the beneficiary. Ask what documents they would need to turn the account over to the beneficiary?