IIRA BDA and Roth IRA BDA Trust Scenario
Hello,
I have 2 accounts (IRA BDA and Roth IRA BDA same original depositor for a trust) the beneficial owner of these trust BDA’s, Kevin M Smith, is disabled. Can we confirm how the Secure Act rules apply to these accounts. Do these accounts fall under the 10-year rule? Is there an annual RMD for these accounts? If so, how is it calculated? Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2025-01-27 15:14
If Kevin is the ONLY primary beneficiary of these trusts, the trust will be treated as an EDB due to his disability, and RMDs are calculated using the disabled beneficiary’s single life expectancy. This assumes that the trust is qualified and that no beneficiary other than the disabled beneficiary has any right to the funds until after Kevin’s death, at which point the 10 year rule will apply.