In my example, there are three bones in the same location and with the same orientation: A Blue "IK Controller", a tiny Green "ChildOfForearm" and a big red "Hand".
Hand is child of IK Controller, ChildOfForearm is child of forearm, IK controller is child of Root (or Hips, or Shoulder, as you prefer).
The IK Chain is targeted to the IK Controller bone.
IK Controller has a copy rot bone constraint with theese settings: