Trust Taxation of cashing in IRA and Annuity in full and distributing to bene’s – California Income and Principal Act
I am trustee of a trust and want to cash in 100% of the IRA and Annuities and distribute that to the beneficiaries. I am concerned that a large portion of it would be taxed to the trust as principal and therefore I cannot take the DNI deduction. On the other hand I do not want to hold on to it for 10 years either. The trust is subject to the California Income and Principal Act. I would appreciate any input you may have.
Permalink Submitted by willem ooms on Wed, 2022-03-16 18:57
Does any one have any input?