ROTH IRA in trust for beneficiaries
if i take RMD at age 72 then take additional IRA FUND PAY TAXES AND CONVERT TO ROTH IRA CAN THAT be put on trust for grandchildren as beneficiaries? what are tax consequencies
if i take RMD at age 72 then take additional IRA FUND PAY TAXES AND CONVERT TO ROTH IRA CAN THAT be put on trust for grandchildren as beneficiaries? what are tax consequencies
Permalink Submitted by Alan - IRA critic on Fri, 2021-03-05 13:50
Any distributions from your TIRA will be taxable, whether for RMDs, conversions, or other reasons, but not for QCDs. You can name a trust for anyone you wish as your IRA beneficiary. This does not change your taxes, but inherited Roth IRAs are typically tax free for the beneficiary. Inherited TIRAs are taxable to the beneficiary. If a trust inherits a non Roth IRA, and accumulates the RMDs in the trust, the tax rates are much higher than inheriting directly.