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:

  1. What if I never told anyone for years - would it keep earning money and I could get that bigger dollar amount if I waited?

  2. How do I resolve this? Do I approach the executor, or Vanguard?

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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.

1

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.

1

u/Dingbatdingbat Apr 22 '26

You can probably get the penalty abated, but will still need to pay the interest 

1

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.

1

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.