Post DEATH Distribution with Trust Held Inherited IRA
Assuming you have a ” see through” trust where individuals are named, how does the Trustee determine the persons’ status to determine the payout applicable to the trust held inherited IRA? There are 2 adult individuals named as beneficiaries in the trust.
Do we go by oldest?
Permalink Submitted by Alan - IRA critic on Wed, 2024-06-19 19:38
Yes, if annual beneficiary RMDs are required because the IRA owner passed after RBD, the divisor is based on the oldest of the two beneficiaries, and the 10 year rule also applies.
If IRA owner passed prior to RBD, the 10 year rule applies with no annual RMDs.