ASHEVILLE, NC / ACCESSWIRE / April 2, 2021 / What is a beneficiary when talking about a Self-Directed IRA? According to a recent post at American IRA, the term is not exactly what many people think it means. The popular conception may be that investors think of a beneficiary as someone who stands to inherit an IRA outright. But the true definition is a little more subtle than that, as recently explained at the American IRA blog.
The blog quotes the IRS website when it comes to the definition of the beneficiary. Says the IRS website: "A beneficiary can be any person or entity the owner chooses to receive the benefits of a retirement account or an IRA after he or she dies." However, a beneficiary does not necessarily become the "owner" of the IRA except in certain cases-if the beneficiary is a spouse of a deceased individual and chooses to take on ownership of the IRA.
In other cases, the beneficiary can be simply an individual who receives the benefits but does not take over ownership of the IRA.
In the post, American IRA details the subtle differences between naming a beneficiary and naming an heir. However, in both cases, investors should include these considerations when constructing an estate plan, as designating a beneficiary within a Self-Directed IRA can be part of a rock-solid estate plan that cares for loved ones after the death of the account owner.
"This post talks about beneficiaries in clear terms," said Jim Hitt, CEO of American IRA. "It's important that people understand their options when naming a beneficiary, and what they can expect to happen. It's not always the first thing on investors' minds, but it's certainly something that anyone thinking about their legacy should be aware of when it comes to Self-Directed IRAs."
For more information, visit the post by clicking to www.AmericanIRA.com. Interested parties may also reach out to the Self-Directed IRA administration firm American IRA by dialing 866-7500-IRA.
About:
"American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $500 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties, or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, NC."
SOURCE: American IRA, LLC
View source version on accesswire.com:
https://www.accesswire.com/636441/American-IRA-Discusses-Who-is-a-Beneficiary-Within-a-Self-Directed-IRA
