Beneficiary in stand alone accumulation trust
• What happens to future RMDs when primary beneficiary die in Stand Alone Trust ? Does designated trust keep receiving RMDs or Trust will get only lump sum money left over in Roth IRA account? or, Would remaining RMDs be continued to be paid to remainder beneficiaries or RMDs will stop and remaining amount be paid in lump sum to beneficiaries?
Permalink Submitted by Alan - IRA critic on Tue, 2014-06-03 20:28
The RMD requirements do not change upon death of a beneficiary including a trust beneficiary. However, the provisions of the trust will determine whether the RMDs are accumulated for remainder beneficiaries, passed through to them, or whether the trust will terminate. Trustee may have authority to request a lump sum distribution, all the IRS cares about is that RMDs are continued as a minimum.