Trusts as IRA beneficiaries. Can the 10yr rule apply?
I see that Trusts listed as IRA beneficiaries are “typically” treated as Non-Designated Beneficiaries subject to the 5yr rule. But is there special wording available to trusts that would lead them to be treated as Designated Beneficiaries thus availing them of the 10yr rule instead?
Thank you.
Joe M.
Permalink Submitted by Alan - IRA critic on Wed, 2023-11-01 18:45
Most trusts are qualified for look through, which enables the 10 year rule. Trusts for disabled beneficiaries or conduit trusts may allow RMDs to be based on the age of the conduit or disabled beneficiary. Trusts that are not qualified for look through are subject to the 5 year rule if the IRA owner passed prior to RBD, or to the remaining life expectancy if they passed post RBD.
Permalink Submitted by Joe Messina on Wed, 2023-11-01 19:26
Thank you.