Trust as IRA Beneficiary
Decedent created a Living Trust and designated it as the beneficiary of D’s IRA annuity.
In claimimg the IRA, can the Trustee defer distribution of the funds for up to ten years? If so, is it true that the Trustee can make withdrawals from time to time throughout the 10 year period?
Permalink Submitted by Alan - IRA critic on Fri, 2022-02-11 22:02
The trust must be qualified for look through for the 10 year rule to apply, and the beneficiaries of the trust also determine of the 10 year rule will apply. Is the trust a conduit or accumulation trust? The trust provisions also determine how much can be distributed from the IRA. The IRS does not care as long as at least the proper RMD is distributed. Usually, a living trust beneficiary does not accomplish much v. leaving the IRA outright.