Converting Roth IRA to Irrevocable Trust
Is it possible to transfer assets from Roth IRA ( after five years ) to irrevocable Trust and give it away using present Estate Tax exemption ? Purpose being to reduce taxable estate
If you pay taxes and convert ROLL OVER IRA to ROTH IRA at least after 5 years when either owner or spouse who inrited that account dies can you use second person”s exemption and transfer to irrevocable trust for grand children?
Permalink Submitted by Alan - IRA critic on Wed, 2021-02-17 15:59
No, this is not allowed while the Roth owner is alive. Of course, the owner could take a full tax free distribution after the Roth is qualified, and deposit the proceeds into a trust, but that would end the Roth IRA. Or if not qualified pay whatever tax is due from a full distribution and deposit the proceeds into the trust.