Trust and inherited IRA RMD
The facts:
IRA owner passes away in 2007 at age 79.
The IRA bene form states “[i]6 children share equally under Smith Family Trust[/i]”.
The IRA has been seperated into 6 seperate accounts, with one titled
[i]Kim Jones
CGM IRA Beneficiary Custodian
Beneficiary of Maggie Smith[/i]
Kim is not the oldest.
Question:
Because the IRA came through a trust does Kim use Maggies age for the RMD, the oldest Sibling or her own?
Permalink Submitted by Alan Spross on Sat, 2008-03-08 19:57
The oldest sibling IF the trust was “qualified”, because the trust was the IRA beneficiary, despite the rather redundant wording used. The separate account rules do not apply to trust beneficiaries for RMD purposes even though the separate accounts can be set up to separate the interests. The new inherited IRA title suggests that the trust has now been terminated. Is that the case?
If by chance this trust was NOT qualified for look through treatment, then the decedent’s non recalculated remaining life expectancy would apply for RMD purposes rather than the oldest beneficiary’s non recalculated life expectancy.