Standard Designation
Upon your death, the assets held within your IRA will be distributed to your selected beneficiary(ies). If the said beneficiary(ies) predecease(s) you in death, the beneficiary(ies) percentage will be divided, on a pro-rata basis, among the remaining primary beneficiary(ies), if any, or if there is no surviving primary beneficiary(ies), amount the contingent beneficiary(ies).
Per Stirpes
Upon your death, the assets held within your account will be distributed to your selected beneficiary(ies) as normal. If the said beneficiary(ies) predeceases you, his or her percentage is passed on, equally, to his/her issue. If he or she has no surviving issue, the funds will be divided among the remaining beneficiary(ies) on a pro-rata basis. Per Stirpes and Per Capita MAY NOT be used within the same generational level of designation (i.e. one primary beneficiary Per Stirpes and one Per Capita).
Per Capita
Upon your death, the assets held within your account will be distributed to your selected beneficiary(ies) as normal. If the said beneficiary(ies) predeceases you, his or her share is divided equally among both his or her issue, as primary beneficiary(ies), and the remaining primary beneficiary(ies) named by you. If he or she has no surviving issue, the funds will be divided among the remaining beneficiary(ies) on a pro-rata basis. Per Capita and Per Stirpes MAY NOT be used within the same generational level of designation (i.e. one primary beneficiary Per Capita and one Per Stirpes).
Per Capita provides an account owner the ability to distribute his/her account so that each of the surviving descendant(s) will share equally, regardless of generational line.
Per Stirpes vs Per Capita
Suppose you have three children named A, B, C and each of your children have two grandchildren. Regretfully, your spouse and Child A passed away.
If you designate your beneficiary(ies) per stirpes, your children are each entitled to ⅓ of your account. Since Child A has predeceased you, their share will be divided equally to their issue. Grandchild A1 and Grandchild A2 will each received ⅙ of the account, while the Child B and Child C will get ⅓ each.
If you designate your beneficiary(ies) per capita, the four living beneficiary(ies) (Grandchild A1, Grandchild A2, Child B, and Child C) will divide the account equally with each receiving ¼ of the account.
All My Children
Upon your death, the assets held within your account will be distributed to your surviving natural or adoptive children. Stepchildren are not eligible with this designation. Should there be no living children at the time of the account owner’s death, the assets will pass to the contingent beneficiary(ies), if named, or to the estate if there are no contingent beneficiary(ies). It is not necessary to list the names of each individual child.