EDB
I have a client who inherited money from his mother. He is disabled and his funds are in an Inherited IRA, but it’s an SNT special needs trust. Since he’s a qualified beneficiary, do I figure his RMDs out with the same methodology we used for Inherited IRAs pre 01/01/2020?
Permalink Submitted by Robert Roselli on Fri, 2024-12-06 11:41
There is no 2nd trust. Both SNT’s are set up with the same EIN. One is an Inherited IRA and the other is a brokerage account set up as an SNT. The disabled beneficiary’s mother had an IRA. One of the beneficiaries was his sister and his SNT was the other beneficiary. When she passed away, I set up an Inherited IRA trust account, which is his SNT. His mother also had a brokerage account and his SNT was a beneficiary. So that is why I set up an SNT and Inherited IRA SNT. When I take RMDs from the Inherited IRA SNT, I am moving it to the non-IRA SNT, which has the same EIN. When I move $ 6,386 from the Inherited IRA to the trust, is that a taxable event since it’s not going to the beneficiary, but going to his SNT.