NCUA Deposit Insurance Covers Inherited IRA

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ALEXANDRIA, Va. – NCUA said yesterday that an individual retirement account with a designated beneficiary would continue to receive separate NCUSIF coverage up to $250,000 after the owner’s death.

“With respect to an inherited IRA, NCUA share insurance coverage will continue up to the $250,000 maximum, separate from the share insurance coverage of other IRAs and accounts owned by the designated beneficiary, if certain conditions are met,” NCUA said in a new legal opinion.

Those conditions include that the inherited IRA be maintained in the name of the decedent; the Internal Revenue Code and other tax laws recognize the continued existence of the IRA; the tax code considers the named beneficiary as a qualified designated beneficiary; and the inherited IRA is not commingled with other IRAs owned by the beneficiary.


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