How to Name an IRA Beneficiary (and What Happens If You Don’t)

Your IRA beneficiary designation is one of the shortest and most important forms you will sign. It decides who receives your IRA assets when you die, and in most cases it controls even if your will says otherwise.

This guide is for IRA owners filling out or updating a beneficiary form: who to name, how to complete it, and what happens if no one is named. What heirs must withdraw after the owner’s death is covered in our inherited IRA rules guide.

A blank ruled sheet of paper, a black fountain pen, a plain envelope, reading glasses, and a small potted plant on a walnut desk, suggesting an IRA beneficiary designation form.
An IRA beneficiary designation form tells the custodian who receives the account.

What an IRA beneficiary designation does

The IRS describes a beneficiary as any person or entity the account owner chooses to receive a retirement account or an IRA after death. The account owner must name that person under the procedures the custodian sets.

FINRA’s investor guide notes that retirement accounts pass directly to named beneficiaries, and that beneficiary designations typically override your will. Other instructions in a will do not change that.

Opening a new account? Our how to open an IRA guide shows where this step fits.

Types of beneficiaries you can name

Most forms have two layers, filled by several types of beneficiaries.

Primary beneficiary

A primary beneficiary is first in line for the assets.

Contingent beneficiaries

Contingent beneficiaries are the account owner’s backup. They inherit only if every primary beneficiary has died, cannot be located, or refuses the assets. If your primary beneficiaries pass away before you and you have no named contingent beneficiaries, the funds fall to the custodian’s default rule.

Two rows of plain wooden blocks, a taller front row and a shorter row behind it, with two blank index cards on an oak desk, suggesting primary and contingent beneficiaries.
Contingent beneficiaries are the backup row behind each primary beneficiary.

Spouse, non-spouse, trust, estate, or charity

You can name a spouse, adult children, other family members, a trust, your estate, or charitable organizations. Each choice changes how the assets are taxed and paid out later.

How to fill out an IRA beneficiary form

Most custodians let you update beneficiary information online or on paper:

  1. Name each primary beneficiary with full legal name, date of birth, and relationship.
  2. Give each person a percentage of the assets.
  3. Add contingent beneficiaries with their own percentages.
  4. Decide what happens if a beneficiary dies first. Some forms offer per stirpes, Latin for “by branch,” which sends that share to the deceased beneficiary’s heirs. Not every custodian offers it.
  5. Submit the form and confirm the custodian has it on file.

Keep a copy for each account so your executor can see who is named.

Why the designated beneficiary label matters for taxes

Under the SECURE Act, a person you name is a designated beneficiary. The label sets how long funds can stay in the inherited account.

Eligible designated beneficiaries

IRS Publication 590-B lists five eligible designated beneficiaries: the surviving spouse, the owner’s minor child, a disabled or chronically ill individual, and anyone not more than 10 years younger than the IRA owner. A chronically ill individual or disabled heir can generally take distributions based on their own life expectancy. A surviving spouse who stays a beneficiary can also take distributions based on life expectancy. Most other heirs, including a typical non-spouse beneficiary, must empty the inherited IRA by the end of the 10th year following the year of the owner’s death. A minor child moves to that 10-year rule at the age of majority.

Annual withdrawals and the required beginning date are explained on our inherited IRA rules and required minimum distributions pages.

Income tax on what beneficiaries receive

Beneficiaries must include taxable distributions in gross income, so heirs of a traditional IRA generally pay income tax on amounts paid out. The 10% early-withdrawal penalty does not apply to amounts paid to a beneficiary after death; see our IRA early withdrawal exceptions list. That is different from a 72(t) SEPP, which is the owner’s own schedule.

An inherited Roth IRA is different. The IRS says withdrawals of contributions from an inherited Roth account are tax free, and most earnings are too, unless the Roth IRA was less than five years old. For withdrawal timing, though, inherited Roth IRAs are generally subject to the same required minimum distributions as inherited traditional IRAs.

Spouse beneficiary rules and spousal consent

Publication 590-B says a surviving spouse who is the sole beneficiary can treat the account as their own IRA, roll it into an own IRA account, or stay a beneficiary. The IRS beneficiary page lists earlier and later spousal beneficiary options by year of death.

A non-spouse beneficiary, including an adult child, cannot treat the account as their own or roll it into their own IRA. A non-spouse beneficiary generally moves funds by trustee-to-trustee transfer to an inherited account titled for the original account owner.

Federal law (IRC section 417) requires many qualified retirement plans to get a spouse’s written, witnessed consent before a participant names someone else. IRAs are usually more flexible, but some community property states require spousal consent, and an account owner’s spouse may have a property claim. That is a state law question for an estate planning attorney.

What happens if you don’t name an IRA beneficiary

If no one is named, or every named heir has died, the IRA agreement’s default beneficiary rule applies. Vanguard, for example, says an unnamed IRA passes to a spouse if married, otherwise to the estate. Your own agreement controls.

An estate can pull the assets into the probate process, and an estate is not a designated beneficiary. If the owner died before the required beginning date, Publication 590-B’s five-year rule requires the account to be emptied by the end of the fifth year after the owner’s death. If death came on or after that date, payouts use the owner’s remaining life expectancy.

Naming a trust or a minor child

A trust cannot itself be a designated beneficiary. Publication 590-B lets its beneficiaries be treated as designated beneficiaries if the trust is valid, irrevocable at death, has identifiable beneficiaries, and the trustee gives the custodian the required documents.

An account owner who names a minor child directly can leave no adult with authority over the assets, so many families use a trust or custodial arrangement. Ask an attorney which fits.

A small wooden box with a brass lock, a brass key, and a folded blank document tied with a navy ribbon on a dark wooden desk, suggesting a trust or estate named as beneficiary.
A trust or your estate can be named, but neither is an individual designated beneficiary.

Review beneficiary designations after life events

Review beneficiary designations after life events such as marriage, a birth, a death, or divorce. An outdated form can send money to an ex-spouse or leave out a new child, and divorce does not always update it; see our QDRO and IRA divorce guide.

An hourglass, two plain gold wedding rings, a closed kraft-paper folder, and a fountain pen on a wooden desk, suggesting a beneficiary review after marriage or other life events.
Marriage, divorce, a birth, or a death is a reason to review your beneficiary designations.

Account types: IRAs vs. workplace plans

Each IRA account, 401(k), and other qualified plan has its own form, so an account holder can name different beneficiaries on each. Retirement plans at work may require the spouse unless consent is given.

Estate planning checklist for the account holder

Good estate planning ties the forms on your IRAs and retirement plans to the rest of your plan. As the account holder:

  • List every retirement account and the beneficiary on file.
  • Name charities directly for charitable purposes, or, while alive, use a qualified charitable distribution after age 70½.
  • Tell heirs custodians ask for a death certificate; Vanguard does.
  • Ask how payouts could affect heirs’ taxable income; see our tax strategy guide.

Once you pass your required beginning date and begin taking RMDs, the beneficiary on file still matters. Heirs who already collect benefits may want our Social Security and IRA withdrawals guide.

IRA beneficiary FAQ

Can you pass your IRA to your children?

Yes. Adult children usually follow the 10-year rule, not their own life expectancy.

Should the beneficiary of an IRA be a trust or a person?

A person is simpler. A trust adds control but must meet the IRS tests above.

Do beneficiaries pay tax on an inherited IRA?

Usually yes: traditional IRA withdrawals are subject to income tax. Qualified Roth withdrawals are generally tax free.

What is the best way to pass an IRA on to heirs?

Naming individuals, adding contingent beneficiaries, and keeping forms current gives surviving beneficiaries maximum flexibility.

The bottom line

Your IRA beneficiary designation decides who inherits the assets, how fast heirs must withdraw the funds, and whether the estate gets involved.

Written by Tim Schmidt and reviewed for tax and account accuracy by Sean Webster, CPA. Last reviewed November 10, 2026 (America/New_York). This guide is for general education. It is not tax, legal, or investment advice. IRAInvesting.com is not a custodian, broker-dealer, law firm, or investment adviser. Beneficiary and property rules also depend on your state and your account agreement. Before you act, talk with a licensed tax professional or an estate planning attorney who can review your situation. Investing involves risk, including the possible loss of principal.