Pension Owner Deceased with Trust as Bene
In 2008, my client’s father passed away after the RBD for withdrawals from his Marathon Cash Balance Pension Plan. His beneficiary is a qualified trust that allows 2/3 of the money to pass through to his direct decendants and the other 1/3 to be held in trust for his 2nd wife for her lifetime income. Is it possible to take the funds from the Marathon plan and have a beneficiary IRA for the two daughters?
Permalink Submitted by Alan Spross on Wed, 2009-04-15 19:23
Not unless the terms of the trust allow termination of the daughter’s trust interest and assignment of their share of the IRA to them directly. Until then, since the trust is qualified, the age of the oldest trust beneficiary will determine the RMD requirement from the IRA. And maybe the 2nd wife is not the oldest……..