RMD Requirments for a Roth IRA left to a marital trust

Submitted by Joseph Schwarz on Wed, 2020-04-29 02:42

I have a client working through his father’s estate that has a Roth IRA that named a marital trust as the primary beneficiary. He’s receiving conflicting information regarding if the Roth IRA can be treated as the surviving spouses or the trust. I understand this will be important when considering RMDs. Has anyone experienced this situation? Thanks in advance.



Submitted by Alan - IRA critic on Wed, 2020-04-29 17:28

There have been prior PLRs allowing the surviving spouse with the right of withdrawal and as trustee of the trust to do a spousal rollover, and that would eliminate RMDs during the lifetime of the surviving spouse. Otherwise, more info is needed such as year of father’s death (pre Secure Act?), and if the trust will be qualified for look through treatment.

Submitted by Bruce Steiner on Fri, 2020-05-01 03:12

  • I was always puzzled by those rulings.  Why would anyone go through the effort to create a trust in which the spouse has the right to withdraw all the assets and leave retirement benefits to it, making the spouse get a private letter ruling, when it would be so much simpler just to name the spouse as the beneficiary?
  • Bruce Steiner

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