Various Types of Power of Attorney
There are various types of Power of Attorney designations and which one is utilized will determine whether or not an agent (that is, the person who is assigned the power) is able to make an IRA withdrawal using a POA. They are:
General Power of Attorney - A general power of attorney allows the agent to act on behalf of the beneficiary (that is, the person whom has signed the legal document) in a number of situations. In most cases a general power of attorney allows the agent to act in any manner that is deemed to be in the best interest of the beneficiary;
Special Power of Attorney - A special power of attorney can be utilized to restrict activity of the agent. The special power of attorney may also be used for very specific reasons such as incapacity, someone who is out of the country who may need home repairs done or other specific purposes as designated in the document. In the case that it is specified in this type of document, you may need to ask "can POA be used for IRA withdrawals" before attempting to use it;
Healthcare Power of Attorney - A heath care power of attorney (sometimes called a health care directive) is generally used to allow someone to act on your benefit in the event that you become incapacitated or otherwise too ill to make a decision for yourself regarding your health care. In general, this type of power of attorney may not be used to handle any type of financial matters. The health care power of attorney is often used in place of a living will;
A durable Power of Attorney is not a different document. This language may be added to any type of a Power of Attorney. In effect, a durable power of attorney means that it lasts as long as it has not been revoked by the maker and the maker is alive. This means that the POA may be used in the event that the grantor is incapacitated for any period of time or permanently.