Trust As Beneficiary

We have an Inherited Traditional IRA with the named beneficiary being a Trust.  The Trust beneficiary successfully asked the court to dispense with the Trust.  We have set up the Inherited IRA for the individual but aren’t sure which RMD rules apply.  New rules, ghost rules or old rules?



The same RMD rules that applied to the trust (whatever they were depending on the data) will apply to the separate inherited IRAs for the trust beneficiaries. The main variables are whether the trust was qualified for look through or not, the type and age of the trust beneficiaries, and whether the IRA owner passed prior to their RBD or after and the DOD.

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