Good morning Barbara,
You are correct, the distribution should not be done on the decedent’s TIN, JHA support is indeed incorrect. If OnBoard Deposits will not allow the transaction to occur as you need, I would consider
doing the following manually in Silverlake:
- Create a CIF for the non-individual bene (if one doesn’t already exist), and make sure you have whatever proforma your FI’s CIP and IRA
administration requires for a non-individual death distribution (Election of payment by bene, most likely).
- Perform a non-reportable distribution from the decedent’s account, such as a transfer distribution; as long as, as you said, the funds moved
out of the decedent’s account without the tax burden falling on the decedent.
- Create a manual 1099-R record for the non-individual bene’s CIF/TIN to reflect the death distribution in the TNENTRY menu, including any
withholding the non-individual might instruct.
- Make a note to check on the decedent’s 1099-R record and the manual 1099-R entry for the non-individual during year-end review to ensure
the proper distribution amounts are being reported for the transaction.
Might not be an automated way of doing it, but I do believe that will do what you are trying to accomplish. Let me know if you have any questions!
Thanks,
David Moore
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From: xxxxxx@marug.simplelists.com <xxxxxx@marug.simplelists.com>
On Behalf Of Barbara Cotta
Sent: Wednesday, August 17, 2022 8:26 AM
To: xxxxxx@marug.simplelists.com
Subject: SilverLake MA-RUG IRA question
*** This e-mail is from an external source. Please do not open attachments or click links from an unknown or suspicious sender ***
Good morning!
Wondering if anyone would be willing to share how you handle a
Non-Individual beneficiary on an IRA when the IRA owner is deceased? We’re fairly new to
OnBoard Deposits and have run into an issue with Non-Individual Beneficiary on an IRA in which owner is deceased and OnBoard requires to open the Beneficiary IRA as an
Individual and doesn’t allow a Non-Individual with a TIN; ie Non-profit or Estate. We called support and they said they way we’re doing it “old school” and we should close out the IRA in the deceased person’s name and report the tax implications in
the deceased person’s Tax ID for the 1099R. This didn’t makes sense to us as the 1099R should be the tax burden of the beneficiary so we called both WalterKluwers and CSI and both said the information support provided is incorrect and in the case of death
of IRA owner the tax implications (1099R) needs to be on the beneficiary regardless if it’s an Individual or Non-Individual. However we can’t open a Non-Individual beneficiary IRA in OnBoard? Has anyone one else run into this?
Any guidance would be greatly appreciated.
Thank you
Barbara
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Barbara A. Cotta
Skowhegan Savings Bank
3 Elm St. EMAIL
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