Trust is a Beneficiary of an Inherited IRA

If an inherited IRA has a trust as the beneficiary, the bank transfers trust fees from the IRA to the trust and codes the distribution transaction as a fee rather than a distribution.

I am unable to find any documentation to back this up to provide to the bank.

Is this allowed or should this be a distribution?



Only IRA custodian fees can be paid directly from the IRA without a 1099R. If the trustee of the trust needs funds from the IRA to pay trustee fees, the distribution from the IRA should be taxable.

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