Permalink Submitted by Alan Spross on Fri, 2009-09-04 03:14
Required procedures for determining the IRA disposition would be as follows:
1) IRA custodian will have to determine if the trust agreement authorizes termination of the trust. There will also have to be a determination if the trust meets the requirements to be considered a “look through” trust.
2) If trust can be terminated AND qualifies for look through treatment, the IRA can be assigned to the beneficiaries. The age of the oldest beneficiary determines the RMD schedule for BOTH beneficiares. The CD issuer can decide if the CD can be partitioned and continued or NOT. If trust can be terminated but is NOT qualified, non individual rules apply with respect to RMD determination.
If trust cannot be terminated but is qualified, RMDs will have to be issued to the trustee using the age of the oldest beneficiary and passed through to each beneficiary. If trust is NOT qualified, then the non individual rules apply with respect to RMDs issued to the trustee.
Non individual rules will result in the IRA being distributed at a much more rapid pace, and the 5 year rule would apply if IRA owner passed prior to the RBD.
Permalink Submitted by Alan Spross on Fri, 2009-09-04 03:14
Required procedures for determining the IRA disposition would be as follows:
1) IRA custodian will have to determine if the trust agreement authorizes termination of the trust. There will also have to be a determination if the trust meets the requirements to be considered a “look through” trust.
2) If trust can be terminated AND qualifies for look through treatment, the IRA can be assigned to the beneficiaries. The age of the oldest beneficiary determines the RMD schedule for BOTH beneficiares. The CD issuer can decide if the CD can be partitioned and continued or NOT. If trust can be terminated but is NOT qualified, non individual rules apply with respect to RMD determination.
If trust cannot be terminated but is qualified, RMDs will have to be issued to the trustee using the age of the oldest beneficiary and passed through to each beneficiary. If trust is NOT qualified, then the non individual rules apply with respect to RMDs issued to the trustee.
Non individual rules will result in the IRA being distributed at a much more rapid pace, and the 5 year rule would apply if IRA owner passed prior to the RBD.