is it required to provide the SSNs for IRA beneficiaries? I plan to add my nieces and nephews (no kids for me), but I don't have their SSNs, and don't care to tip them off as to their being named beneficiaries. Also, that might change in the future. So, I sort of view this as none of the kid's business at this time. Obviously, should they become entitled to the assets, they could not get access to them until they then provide their SSNs.
thoughts?
My broker (Schwab) required the SSN of any/all beneficiaries.
On Dec 12, 11:07 am, "Gil Faver" business at this time. Obviously, should they become entitled to the
IMO, you are entitled to your privacy. BUT... it depends on the brokerage company. I don't believe there is a regulatory guideline on the matter and if there is I can assure you it's not vehemently followed. I've submitted IRA forms without beneficiary SSN's before. Some companies reject the request outright, others will process the request, but ask you to obtain the SSN (there's not any real consequence if you ignore their request) and still others will accept the beneficiary request without issue. Whatsmore, I recently had a brokerage company accept a bene without SSN, but when I went to transfer the money to another brokerage company and they refused until the account paperwork was "in good order". Minor inconvenience.
I would try explaining your predicament to the brokerage company and see what they say.
Or maybe you could get the info from your siblings, but I'd understand if you are reluctant to tip them off too.
Company policy aside, the more info you can give the less likely the possibility of a beneficiary gtting lost. But even that's not likely unless a close-knit family becomes unraveled.
What if the beneficiary is a foreigner?
The beneficiary form states something to the effect of "I understand that if Schwab determines that my beneficiary designation is not clear with respect to the identity of the party or parties that will receive the distribution, then Chuck will have the right, in its sole discretion, to consult counsel and institute legal proceedings to determine the proper distribution of the account, all at the expense of the account, before distributing or transferring the account."
The above is nearly verbatim from Schwab's beneficiary form. With some cajoling I suspect that Schwab would allow a SSN to go unreported, but they put the risk squarely on your shoulders. Barring this extra- ordinary case, I have no doubt the Joe's statement is accurate.
My IRAs list as primary beneficiary "the person to whom I am married at the time of my death" without specifying a name or any other information.
How well will that work if your spouse dies first or you both die within days of one another?
Obviously, if the spouse dies first, the contingent beneficiary replaces the primary. Otherwise, the IRA passes to the spouse. If the spouse dies shortly after the owner, then the IRA passes to the spouse's primary or contingent beneficiary. So it could work just fine. What do you see as a problem?
Dave
Might be tough if you are in a same sex marriage. Thumper
I suppose that could be the case if one of the partner dies in a state that doesn't recognize same-sex marriage. Or perhaps if the IRA custodian is in a state that doesn't recognize them.
Dave
or, use Andrew's approach, and change the form in the circumstance you describe.
Yeah, but if that happens, I'll be dead and won't care. Anyway, I'm not planning on getting divorced.
No, if I cared about the distinction. The point of this note was to help answer the question about whether it is always necessary to provide a beneficiary's social security number, not to invite speculation about the future of my marriage.
Understood. I've gotten used to formulating responses that are applicable to as great a population as possible. Your solution may be fine for you. But of 1000 people that do this, half will get divorced and some portion of those will forget to update the beneficiary, without remarrying, there would be none, and a child would out on properly inheriting the IRA. Of the half that stay married, some will move and lose track of the IRA, the custodian will have a heck of a time finding the deceased's wife with no SS#.
OTOH, your point is well taken, the IRS may not require it, and therefore, not all brokers do. Joe
My reading of the specified primary beneficiary as stated is that it presumes a living spouse and hence no contingent beneficiary has been named. If a contingent beneficiary has also been named then that matter is taken care of.
I don't agree with your conclusion in the case that the spouse dies shortly after the owner. If the spouse dies shortly after the owner the spouse more than likely has no chance to change the beneficiary designations on the IRA and thus the owner's IRA will become part of the spouse's estate.
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