Distribution of RMD when trust is Inherited IRA beneficiary
An Inherited IRA has a trust as beneficiary. When the RMD is paid to the trust and the trustee in turn distributes the RMD to the individual beneficiary of the trust, how is that reported on the K-1 that is given to the individual? As interest income?
Permalink Submitted by Alan - IRA critic on Wed, 2015-03-18 03:26
Determine on what line of the k1 the RMD is shown, then look at p 2 of the k1 to see what line of your 1040 the RMD income on that k1 line should be reported. Yes, it would be very nice if the k1 was revised to move it into the 21st century or at least late in the 20th century……….