Trust as a Beneficiary RMD
My understanding is if there are multiple beneficiaries in a Trust that the RMD is based on the age of the oldest beneficiary. What is the difference between “Uniform Lifetime” vs. “Single Life Expectancy” tables? The RMD based upon “Single Life Expectancy” is a larger amount and fewer years.
Permalink Submitted by Tom Craigers on Sun, 2024-11-24 16:46
My father’s date of birth is 8/12/1931 and his date of death is 9/14/2024. My father started withdrawing from his IRA in 2001 when he was 70.5 years old. The oldest beneficiary, his partner of 19 years, is 89 years old. Her birthdate is 12/27/1934. If my analysis is correct the first required RMD is in 2025. Wasn’t the RMD waived in 2024 anyway because of the Secure Act?
Permalink Submitted by Tom Craigers on Mon, 2024-11-25 11:12
“Therefore, this inherited IRA will only last 6 years, and if there is no year of death RMD perhaps a distribution should be taken this year to spread the tax bill over 1 more year.”
Are you saying if I take my father’s RMD this year I will get a total of 7 years to spread the tax bill rather than 6? What do you mean by “no year of death”? Just curious, why do you call yourself “IRA critic”? Don’t you like IRA’s? 😂 I am starting to hate them with all of the convoluted IRS laws! Are you a CPA, Tax Lawyer or both? You are very knowledgeable! Thanks for answering all of my questions!
Permalink Submitted by Tom Craigers on Fri, 2024-11-29 05:42
I am a little confused. My father didn’t take his RMD for 2024. Are you saying it’s not due until 2025 and if the Trust takes it then it will have to be taken it in addition to the Trust’s RMD in 2025? However, I do plan to have the Trust take my father’s RMD in 2024 to get an extra year in addition to the 6 years based upon the oldest beneficiary, my father’s 89 year old partner. If the Trust takes my father’s RMD in 2024 would it be indicated on my father’s final 1040 or on the Trust’s 1041?