See Through Trust now with RMD changes

Submitted by Michael Gregory on Sat, 2023-06-10 16:54

Is the “See Through Trust” still valid with the new RMD laws. Meaning, I named my Trust as my IRA beneficiary with my wife as primary beneficiary. After her passing it goes too our 2 children. We will make sure it meets the requirements of a “see through” with the custodian. When I pass do any required IRA distributions fall under the 10 year rule or can my wife stretch them out over her life. And lastly, what happens when my wife passes away and the remaining IIRA money is in the account. How must the remaining IRA money be distributed to the children



Submitted by Alan - IRA critic on Sat, 2023-06-10 18:53

Is this a conduit trust or accumulation trust?

Submitted by Michael Gregory on Sat, 2023-06-10 21:08

It is a conduit trust. Thank you so much!

Submitted by Michael Gregory on Sat, 2023-06-10 23:32

It is a conduit trust – thank you so much for helping. 

Submitted by Alan - IRA critic on Sun, 2023-06-11 00:01

  • The basic see through trust rules remain the same, but are refined in some cases by the Secure Act proposed Regs. Your wife as the conduit trust beneficiary will result in EDB treatment using her recalculated (enter the single life table each year) life expectancy as long as she lives. Upon her death, the 10 year rule kicks and in addition if you pass after your RBD, her LE RMD schedule must be continued in years 1-9 of the 10 years, but with an annual 1.0 reduction of the divisor.
  • Note that this arrangement eliminates the ability of your wife to do the spousal rollover and use the Uniform Table for RMDs. Since the Uniform Table produces a much lower RMD, distributions will be higher due to the use of the single life table. 

Submitted by Michael Gregory on Sun, 2023-06-11 16:42

thank you for this great service you perform for us. Stay safe. 

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