STretch IRA
Regarding the Stretch IRA.
Assume the following;
- The parent’s ROTH IRA is under a TRUST
- After Parent’s death, Son (who has reached age of majority) inherits the ROTH money into his TRUST. Same structure as the Parents’
- Son must take the entire sum as a distribution at 10 years.
If the Son creates a Trust for his child before 10 years and moves the money to his Daughter’s Trust can this avoid the required distribution placed on the Son?
Permalink Submitted by Alan - IRA critic on Mon, 2024-07-08 01:41
No. Further, an IRA cannot be moved into a trust but can be inherited by a trust. If the son’s trust inherits the Roth IRA, that trust should state where the funds go after the son’s death, but the 10 years cannot be extended.