Roth Ira’s
Can Roth’s be placed inside of either Revocable or irrevocable trusts?
- There are some special rules regarding trusts as beneficiaries of retirement benefits. See my article on this subject in the March 2004 issue of BNA Tax Management’s Estates, Gifts & Trusts Journal: http://kkwc.com/wp-content/uploads/2015/04/AR20041209132954.pdf .
- It’s generally not a good idea to name a revocable trust as the beneficiary of an IRA. It’s usually better to name the beneficiaries of the revocable trust, or trusts for their benefit, as the beneficiaries of the IRA.
Bruce – what is the difference between “a revocable trust” and a “trusts for their benefit”? Couldn’t the revocable trust include benefits for the beneficiaries? -m
Permalink Submitted by Alan - IRA critic on Wed, 2017-11-08 20:05
No, but a trust can be named as the beneficiary of any type of IRA. If a trust inherited an IRA, the RMDs or other distributions would be paid to the trust.