Accumulating Discretionary IRA Trust — Nonperson beneficiaries
Accumulating Discretionary IRA Trust
Before the SECURE Act it was important to be able to identify the beneficiary with the shortest life expectancy; therefore, all beneficiaries should be real, living, breathing, people not creditors, charities or other trust accounts.
Now with the 10-year rule is this still necessary? Can a charity or other trust account be a beneficiary and still have the 10-year rule apply?
Permalink Submitted by Alan - IRA critic on Sun, 2021-09-12 20:28
Any charitable beneficiary of the trust must be paid off by 9/30 of the year following death for the 10 year rule to apply. If not, then the trust is not qualified and the IRA would have to be distributed under either the 5 year rule for death prior to RBD or over the remaining LE of the decedent if death is on or after the RBD.