End of calander year requirements
What actions need to be taken by calander year end to keep the maximum options open for heirs?
Father-in-law died in November, leaving most assets to a simple trust. There is an IRA (he wanted us to create a stretch, therefore heirs are named beneficiaries), a Roth IRA (trust as beneficiary), an annuity (bene unknown by me, yet), real estate (trust). There may be other assets also.
I just don’t want to miss a year-end deadline as we learn about our assets and options.
Brian
Permalink Submitted by Al Fry on Sat, 2007-12-15 16:53
# 1 priority, make sure the 2007 RMD comes out by 12-31-07.
# 2 priority, don’t let anyone get a check for lump sum from IRAs or Annuity, unless they insist, and know the tax ramifications.
Permalink Submitted by Al Fry on Sat, 2007-12-15 17:07
# 1 clarification: The father-in-law’s RMD from TIRA, assuming he was past his RBD.
Permalink Submitted by Alan Spross on Sat, 2007-12-15 20:42
Seems strange that the Roth has a trust beneficiary when the TIRA does not. For non spouses, the stretch is arguably even more important for the Roth since the distributions will be tax free or mostly tax free, and non spouse RMD rules follow the pre RBD death rules even if your FIL was over 70.5. Hopefully, the trust is qualified for look through treatment per p 38 of Pub 590 so the 5 year rule can be avoided. This is NOT 12/31/07 sensitive, but will become a 2008 issue.
Also not urgent, but you should determine if there was any basis in the TIRA due to non deductible contributions or after tax rollovers.