Permalink Submitted by Alan - IRA critic on Mon, 2024-10-28 13:45
Since a pet trust would not be qualified for look through, the 5 year rule would apply to the IRA if the IRA owner passed prior to RBD, and the remaining LE of the owner in the year of death would apply to determine RMDs from the trust inherited IRA if the owner passed on or after RBD. The trust would have to file a 1041 and pay the taxes on the IRA distributions at the higher trust tax rates.
Permalink Submitted by Alan - IRA critic on Mon, 2024-10-28 13:45
Since a pet trust would not be qualified for look through, the 5 year rule would apply to the IRA if the IRA owner passed prior to RBD, and the remaining LE of the owner in the year of death would apply to determine RMDs from the trust inherited IRA if the owner passed on or after RBD. The trust would have to file a 1041 and pay the taxes on the IRA distributions at the higher trust tax rates.