Trust as beneficiary of IRA using stretch provisions?
Trust is beneficiary of IRA. Can Stretch Provisions be used for payments to those named as beneficaries of trust? Owner will have begun distribution.
Trust is beneficiary of IRA. Can Stretch Provisions be used for payments to those named as beneficaries of trust? Owner will have begun distribution.
Permalink Submitted by Alan Spross on Wed, 2008-05-21 22:35
Only if the trust is qualified for look through treatment. In that case, the life expectancy of the oldest trust beneficiary must be used for all beneficiaries. To determine if qualified see p. 39 of Pub 590. Note that a copy of the trust must be provided to the IRA custodian no later than 10/31 following the year the IRA owner died.
Permalink Submitted by Bruce Steiner on Thu, 2008-05-22 20:16
See my article on this in the March 2004 issue of BNA Tax Management’s Estates, Gifts & Trusts Journal: http://www.kkwc.com/docs/AR20041209132954.pdf