Trust inherited an IRA

Submitted by willem ooms on Wed, 2022-12-28 16:32

Decedent who passed in 2021 was taking rmd. Trust has not taken rmd for 2021. Does it 1) need to for 2021 or can it wait until 2023. 2) How long do the rmd s last? 3) does the Ira have to be paid out in 5 or 10 years? 4) can I rollover IRA to beneficiaries?



Submitted by Alan - IRA critic on Wed, 2022-12-28 17:02

  1. If the trust is qualified for look through, the 2021 and 2022 RMDs are not required to be distributed in those 2 years. If the trust is not qualified, those RMDs are late.
  2. Through 2031 for most qualified trusts (10 year rule). Are the trust beneficiaries all individuals?
  3. Probably 10 years. 5 years does not apply when plan owner passes after RBD.
  4. If the trust provisions allow you that discretion. Assignment of inherited IRAs out of the trust will not change the RMD requirements.

Submitted by willem ooms on Wed, 2022-12-28 20:30

1,2 .Look through: The trust can allocate the IRA to individuals. These are named beneficiairies. One daughter, 3 grand kids. We can allocate other assets to the girlfiend (no spouse) and one non person beneficiary. Would that qualify as a look through? 

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