INHERITED IRA
Hello, my client passed away in march 2023, he had an IRA . The beneficiary of the IRA is his IRREVOCABLE TRUST…His daughter is 50 and has 2 boys aged 19 and 21 and wants to leave her dads IRA to them. Is this still allowed? if so , how would we do this?
Any suggestions are welcome!!
thanks!
Permalink Submitted by Alan - IRA critic on Mon, 2023-08-07 19:41
The IRA RMDs and any additional distributions must be paid to the trust and then subject to the terms of the trust. If the trust allows the trustee the discretion to distribute the inherited IRA out of the trust to separate inherited IRA accounts for the trust beneficiaries, this can be done if the IRA custodian is cooperative. RMDs are affected by whether the trust is qualified for look through or not, and whether client passed prior to RBD or after.