Question about IRA beneficiary – EDBT vs Living Trust
Hi!
- If the IRAs beneficiary is a living trust and the person passes away. And the trust receives an IRA distribution. Is that a taxable event?
- Is this any different than if the IRAs beneficiary is an Eligible Designated Beneficiary Trust?
Thank you
Permalink Submitted by Alan - IRA critic on Fri, 2025-05-16 21:43
All IRA distributions to the trust are taxable to the trust regardless of the whether the trust beneficiary is an EDB. This would probably not be the case if the IRA was a Roth IRA.