Pre 2020 Inherited IRA (Trust is the Beneficiary)
Let’s say there is a pre-2020 inherited IRA where the trust is the beneficiary and the spouse is the sole beneficiary of the trust. Let’s also assume that the trust qualifies as a conduit trust. How do you determine which factor to use on the RMD table? Is the spouse able to use his/her life expectancy each year? Or, do you simply use his/her life expectancy for the first year and then subtract 1 from that figure each year?
Permalink Submitted by George McCabe on Wed, 2024-01-17 23:22
How does this change if the spouse is not the sole beneficiary of the trust?
Permalink Submitted by Alan - IRA critic on Thu, 2024-01-18 00:24
A sole spousal beneficiary of a qualified conduit trust is allowed to “recalculate” their RMD each year, meaning that the single life table is used each year, without the 1.0 reduction used in most cases (non recalculation). If the spouse is not the sole beneficiary, the non recalculation method applies.