Post Death IRA Transactions
Author: Klaralee R. Charlton
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
When an IRA owner passes away, the beneficiary designation determines the complexity of the claims process. While individual beneficiaries typically have a straightforward path, complications arise when a trust, estate, or no beneficiary at all is named. Understanding the available options is crucial to minimizing tax burdens and ensuring proper distribution of retirement assets.
This course provides guidance on navigating post-death IRA and 401(k) transactions, including the tax implications of different beneficiary designations. Participants will learn how to advise clients on their options, handle complex cases requiring attorney opinion letters, and identify strategies that financial institutions may not always explain—potentially saving clients thousands in taxes.
Ideal for financial and estate planning professionals, this course equips practitioners with the tools needed to handle post-death retirement account distributions effectively.
Publication Date: October 2025
Designed For
Attorneys, CPAs, and Enrolled Agents.
Topics Covered
- Pre-Death IRA Withdrawal Review
- Post-Death IRA Withdrawal Options
- Impact of Secure Act, Secure 2.0 Act and Regulations
- Options for Named Beneficiaries
- Options for the Estate
- Withdrawal by the Estate
- Allocations to Estate Beneficiaries
- Separate Share Rule
- Charitable Beneficiaries
- Trusts Named as IRA Beneficiaries
Learning Objectives
- Explain beneficiary options for claiming inherited IRAs and 401(k)s
- State how to evaluate methods for dividing and distributing accounts to trusts and estates
- State how to analyze tax consequences of post-death distribution rules
- Determine tax-efficient distribution strategies, including RMDs and the 10-year rule
- Describe planning techniques to minimize taxes and administrative burdens
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
