IRA beneficiary what if

[GrayHare]

Given an IRA with 3 beneficiaries designated as follows:
Primary: Person A 100%, Person B 0%
Contingent: Person C 100%

Upon the IRA holders death, if Person A has predeceased, is Person B or Person C the beneficiary, or is it someone else such as Person A's beneficiaries? In case it makes a difference, let's say VG is the custodian.

[pjm-7]

Generally, Person B with 0% is not considered a beneficiary. If there is a "per stirpes" on beneficiary Person A and Person A predeceases the IRA owner, then the proceeds pass to Person A's children. Without the "per stirpes" then the IRA goes to the contingent beneficiary, Person C.

The beneficiary language should be reviewed with the IRA custodian to make sure that the assets will be passed as wished. Every beneficiary form is different.

[GrayHare]

Quote:

Originally Posted by pjm-7 Generally, Person B with 0% is not considered a beneficiary. If there is a "per stirpes" on beneficiary Person A and Person A predeceases the IRA owner, then the proceeds pass to Person A's children. Without the "per stirpes" then the IRA goes to the contingent beneficiary, Person C.

That's what I thought but I'm hearing from VG that Person B becomes the beneficiary. Lots of IRA-knowledgeable people here hence my post for discussion.

[Sunset]

Why would you have Person B in the list at all ?

[GrayHare]

Quote:

Originally Posted by Sunset Why would you have Person B in the list at all ?

As an alternate primary beneficiary, if VG is correct in how this works.

[Act2]

Have never seen or considered a 0% amount for person B as Primary. But if B had even 1% designated and A predeceased owner, it is my understanding it would all go to B, assuming no per stripes designation. So maybe they are right that it's the designation of B as a primary and not the percentage that matters if A dies first.


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