What Occurs to an Individual Retirement Account Without Any Beneficiary Designation?

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Here’s why:
Decisions, Decisions

When an Individual Retirement Account is paid to a designated recipient, that recipient can make the extremely smart option to take just the needed minimum distribution, or RMD, from the account each year. It’s crucial that you educate any recipient about the advantages of extending an IRA, or talk to your estate planning attorney about options for making sure that your recipient’s inheritance is preserved.
Special Rules for Estates

If your Individual Retirement Account is left without a designated beneficiary, then it’s paid to your estate. Plus, being dispersed within five years significantly restricts the life span of your IRA, cutting brief its growth– and its benefit to your liked ones.
What to Do

So, as the owner of an Individual Retirement Account, make sure that you designate not just a primary recipient, however an alternate beneficiary.