#13 What happens to an IRA or 401k when the owner dies?

[@lennysmyth9951]

Hello I have a question if I have a self directed ROTH IRA owns a LLC wich owns other LLCS for real estate. WHEN I PASS AWAY AND MY IRA gos to my two kids how is it devided between the two kids

[@MatSorensen]

It depends how you add your kids as beneficiaries for your IRA. At Directed IRA, you can easily update your beneficiary info at any time.

[@scott3805]

So what happens if you die and don't have a beneficiary. No kids or relatives to leave it to. Does the government get it or should you name a charity to get it?

[@nickelhorse]

If the beneficiary is already older than 59 and a half and the options provided by the company are: 1. Transfer portion to a separate account in the plan under my name or 2. Spousal beneficiary direct rollover to an IRA. Whats the difference? ps: love the episode, learned a lot. Thanks guys!

[@MatSorensen]

Good question, you can schedule an appointment with one of our account specialists to get this answered here: directedira.com/appointment/

[@RazorBoy22402]

Hypothetical - A person 75 year old empties out their $1,000,000 IRA and puts it in their personal account all at one time. This person dies before paying the taxes on the withdrawal. Do the beneficiaries have to pay the taxes ? Thanks

[@Just5294me]

Too many jokes. That’s why this is so boring

[@MatSorensen]

Thanks for your feedback!