See Through Trust (and is Qualified)
Trust is 100% Primary Bene on IRA. The deceased IRA owner was 75 and taking RMD’s. Trust is deemed to be Qualified. The 3 beneficiaries are age 60, 50, 45. The old rules required using the oldest bene’s DOB to determine RMD, has any Secure Act legislation or clarity changed to using each bene’s DOB vs. oldest for all?
The new Bene IRA’s has already been set up for each of the 3 bene’s. There was no specific language such as a sub trust language within the Trust document. A very simple Trust naming the 3 bene’s allowing immediate access to the funds. Rationale for Trust as primary bene was each of the 3 bene’s(IRA owner’s children) had different descendant flow based on family dynamics should a primary bene had predeceased IRA owner.
Permalink Submitted by Alan - IRA critic on Thu, 2025-08-21 10:53
The assignment of separate inherited IRAs out of the trust does not change the RMDs for the 3 beneficiaries from what would have been required for distributions to the trust.
Therefore, the 10 year rule applies and because IRA owner passed after RBD, annual RMDs in years 1-9 must be made to each beneficiary, but all based on the age of the 60 year old (in the year following the year of death) because the separate account rules do not apply to trust inherited accounts. Note that these annual RMDs will still be quite below the amount that would be needed if equal taxable distributions were desired over the 10 years, so there still be a much larger distribution needed in year 10 if a beneficiary only takes out the RMD amount in years 1-9.