Trust as beneficiary (IRS pub #)
1. I am looking for the IRS publication number that shows how an IRA has to be paid within 5 years if trust is named as beneficiary. (non natural bene)
2. Also the publication number, if different when a trust is named beneficiary of a deferred annuity prior to annuitization. 5 year rule exist here as well. I can not for the life of me find these publications on IRS site. Thank you so much.
John
Permalink Submitted by Anonymous (not verified) on Mon, 2010-08-09 20:33
The only Publication that deals exclusively with IRAs is 590.
pko
Permalink Submitted by Alan Spross on Mon, 2010-08-09 21:35
1. IRS Pub 590, p 38, “Trust as Beneficiary”. You need to determine if the trust is “qualified” for look through treatment under which the life expectancy of the oldest trust beneficiary applies. The 5 year rule would come into play if the owner passed prior to the RBD AND the trust was NOT qualified. Most trusts do meet the requirements.
2. IRS Pub 575 discusses RMDs for qualified annuities and qualified plans as well. If you have a NQ annuity, the RMD rules do not apply. In there place are state laws that determine when distributions must occur as well as insuror requirements.