Permalink Submitted by Alan Spross on Thu, 2011-07-21 18:55
Hi Al,
Correct.
While custodial accounts are similar to trusts, they are not trusts and therefore not subject to the RMD rules for trust beneficiaries. Note that the RMDs or additional amounts the custodian might elect for distributions from the inherited IRA are subject to the kiddie tax, ie. taxed at the parent’s rate even if a parent are not the custodian.
Permalink Submitted by Alan Spross on Thu, 2011-07-21 18:55
Hi Al,
Correct.
While custodial accounts are similar to trusts, they are not trusts and therefore not subject to the RMD rules for trust beneficiaries. Note that the RMDs or additional amounts the custodian might elect for distributions from the inherited IRA are subject to the kiddie tax, ie. taxed at the parent’s rate even if a parent are not the custodian.
Permalink Submitted by Al Fry on Thu, 2011-07-21 19:02
TKU, Alan. Been out of action with Spring Training (AZ & FL) and a bout of pneunomia following.