Here’s a hard one?????
Under the current tax law in which does the tax treatment fall under if an IRA’s beneficiary is an I.L.I.T. ? Is it the trustee or the beneficiary of the trust. Also another question does the 5 year distribution rule work in this case also?
Permalink Submitted by Al Fry on Wed, 2008-10-22 19:56
Assuming the trust qualifies as a see-through, the RMDs would be based on the oldest ILIT’s bene. It has nothing to do with the trustee. The five year rule only applies if the IRA owner dies prior to his/her RBD.