Eligible designated beneficiary
Certified Financial Planner glossary · Certified Financial Planner
Definition
A category of retirement account beneficiary,surviving spouse, minor child of the owner, disabled or chronically ill individual, or a person not more than ten years younger,permitted to stretch distributions beyond the ten-year rule.
Eligible designated beneficiary in plain English
A widow inherits her husband's IRA and asks whether the SECURE Act's ten-year empty-the-account rule is the only path. Eligible designated beneficiary status can stretch further. The category covers a surviving spouse, a minor child of the owner, a disabled or chronically ill individual, or a person not more than ten years younger than the owner. Those beneficiaries may take distributions beyond the ordinary ten-year rule. Adult children who are not disabled usually do not qualify just because they are "family," so read the stem's beneficiary facts before assuming a stretch.
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