IRA BDA Question
Hello,
I have a client who passed in 2024 at age 77. The beneficiary on this account is a trust. The Trustee is inquiring that since the beneficiaries of the trust are less than 10 years younger than the decedent will they follow the single life expectancy once the funds get moved into BDA’s in their own names after the trust BDA or would the beneficiaries have to follow the 10 year rule, lump sum or disclaim.
Any guidance would be greatly appreciated. Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2024-05-08 15:23
If all the trust beneficiaries including remainder beneficiaries would be EDBs, and if the trust is qualified for look through, RMDs to the trust would be based on the age of the oldest EDB. If the trust is later terminated, the same RMD schedule would apply to the separate inherited IRAs, since the separate account rules do not apply to trusts.