Trust as IRA beneficiary
If the trust documents permit distributions of assets, would the distribution of an IRA from a trust to two separate inherited IRA for the trust beneficiaries be a taxable distribution?
If the trust documents permit distributions of assets, would the distribution of an IRA from a trust to two separate inherited IRA for the trust beneficiaries be a taxable distribution?
Permalink Submitted by Alan - IRA critic on Wed, 2015-08-05 18:34
No, as long as the IRA funds are moved by direct trustee transfer.
Permalink Submitted by Jose Morales on Wed, 2015-08-05 22:50
If the IRA owner is already deceased this is too late to address, but if the IRA owner wanted the two trust beneficiaries to receive these funds outright they should have just been named the beneficiaries of the IRA rather than the trust.