SARSEP with a revocable Family trust listed as beneficiary
Have a FRIEND who pasted away in 2024 at the age of 75 already taking their RMD’s from their SARSEP. Their beneficiary on the SARSEP is their revocable family trust. How many years does the spouse have to take the funds out of this type of account with the family trust listed as the beneficiary and the retirement account being aSARSEP?
Permalink Submitted by Alan - IRA critic on Mon, 2024-11-11 09:56
It depends on the terms of the trust including any other trust beneficiaries, whether a conduit or accumulation trust or if it is qualified for look through. Being a SARSEP does not affect these rules.
If not qualified for look through, the decedent’s remaining age determines the RMDs. If qualified, and a conduit trust, the RMDs would be based on the spouse’s remaining life expectancy, otherwise the 10 year rule would apply.
Finally, if the trustee of the trust will have the authority to terminate it and assign the inherited IRA out of the trust to the spouse, the spouse can assume ownership and use the Uniform Table.