Rev Trust as beneficiary…
Client has passed away and her IRA has now been re-registered as a Inherited Beneficiary IRA with the Revocable Trust as the account registration. How does RMD effect this?
Client has passed away and her IRA has now been re-registered as a Inherited Beneficiary IRA with the Revocable Trust as the account registration. How does RMD effect this?
Permalink Submitted by Alan Spross on Tue, 2011-02-22 21:20
First, you need to determine if the trust is qualified for look through treatment. Most of them are. But there is a deadline to provide documentation to the IRA custodian.
If qualified, then the age of the oldest trust beneficiary will determine the RMD divisor for the trust, even if the trust eventually terminates and the IRA is assigned to the trust beneficiaries. Worst case would be if the trust were NOT qualified and client passed prior to the RBD. The 5 year rule would apply in that situation.