special needs trust
My client has a special needs trust for her brother and she is the trustee.
At another institution there is an Ira that he is the beneficiary of (their father passed). She said the cpa told them nothing had to be taken out.
Does a special needs trust holding an Ira have different rules regarding beneficiary options?
Permalink Submitted by Alan Spross on Thu, 2009-09-24 20:58
No, a qualified SNT enables the SNT beneficiary to take RMDs over the life expectancy of that beneficiary. There is no exemption from RMDs. Following is a link to an article discussing PLR 2006 20025, which addresses SNT IRA beneficiaries:
http://advisor.morningstar.com/articles/printfriendly.asp?s=0&docId=1263…