RMDs From Trust
Hello,
I have a client who has passed away and left their account to their trust. The trustees have been taking RMDs out of the account since 2016. The trustees have decided to dissolve the trust. If the beneficiaries of the trust are going to move their percentage of the assets into their own beneficiary IRAs (the custodian allows this) does the trust beneficiary IRA need to take a 2018 RMD before the assets are moved into the individual beneficiary IRAs?
Permalink Submitted by Alan - IRA critic on Fri, 2018-04-13 00:26
Assigning the inherited IRA out of the trust to the trust beneficiaries can be done without taking the 2018 RMD as long as each beneficiary takes their share of the RMD before year end. The RMD divisor will not change and therefore the RMD total amount will not change as a result of assignment of the inherited IRA.