Bene IRA from See Through Trust
Working with a daughter whose dad passed away this year after RBD and no UTD withdrawals. trust is bene of several IRA annuities (not my idea). Requested see-through treatment for the larger policy so she will be treated as if she was a bene of the IRA/annuity (trust ignored). She has bene IRA for the see through policy, and trust took lump sum for the other policies that would have exceeded his RMDs for the year.
Does the daughter have to take an RMD from the bene IRA this year?
Permalink Submitted by Alan - IRA critic on Tue, 2022-12-13 15:24
No. Under the IRA RMD aggregation rules fathers year of death RMD has been completed. Daughter ‘s first beneficiary RMD is not due until year end 2023 as she will have to take annual RMDs within the 10 year rule, and drain the inherited IRA annuity in 2032. The insurance contract may have further limitations and the company will have to provide the annual RMD amount if there are still any fringe benefits included in the inherited annuity.
Permalink Submitted by Tom Peterson on Tue, 2022-12-13 16:04
Thank you!