ira titling and RMD calculation
There is $1million in a simplified PSP. The owner died. The benes are his 3 children (ages 56,53,52), who get $250k each. The remaining $250k gets split among 3 grandkids (ages 23,21,19). The money is going into a testimentary trust.
1 Who’s age should we use to calc RMD for grandkids?
2. As benes, how should the newly created accts be titled? Here is the example of the recommendation…Joe Doe and Jane Doe, trustees, John Doe Trust Beneficiary Distribution Account FBO Joe Doe SS#123-45-6789. They stated the words “trust beneficiary distribution account’ needed to be included in the titling. Is this correct?
Thank you,
Mark Giesting
Permalink Submitted by Alan Spross on Tue, 2010-04-13 16:44
Is the trust receiving the entire amount or just the grandkids shares?
Is the trust qualified for look through treatment?
Can the trust be terminated or must it continue?
Generally, the registration requirement for an inherited IRA is flexible enough to allow the IRA custodian to determine the wording that works best with their processing platform. All the IRS requires is that the title include the name of the original IRA owner and the name of the beneficiary, and the TIN of the beneficiary is assigned. Either the decedent’s name or the beneficiary (trust) can be listed first.