SNT as bene of Roth IRA
Client left bene of Roth IRA to trust. Trust has testamentary SNT for daughter. How is ownership of the Roth IRA to be established? Will the SNT ‘own’ the Roth?
Client left bene of Roth IRA to trust. Trust has testamentary SNT for daughter. How is ownership of the Roth IRA to be established? Will the SNT ‘own’ the Roth?
Permalink Submitted by Alan - IRA critic on Fri, 2021-06-11 22:30
Yes, if the trust was drafted correctly. It is also critical that the SNT meet the qualifications for a look through trust to avoid the 5 year rule and protect life expectancy RMDs. That includes providing the trust provisions to the Roth custodian by the deadline.