How to title Ret Plans for Minors | Ed Slott and Company, LLC

How to title Ret Plans for Minors

I have a 401k and a P/S and want to name my minor daughter as my beneficiary as I am a single dad. I want to use the UTMA strategy with my father as the custodian so he may be the custodian on her IRA should i pass. What is the wording, limitations, etc that I need to do this. Thanks in advance.

If I were naming my GS Drew as bene with Kristi as Custodian, it would be "Kristi K., Custodian FBO Drew K., under IN UTMA".

It is interesting to note that the resurgent kiddie tax does not apply to those RMDs paid into an UTMA account when there are no living parents. Therefore, in this situation more of the RMDs would be sheltered. Still, upon reaching majority a ton of cash will be available to the child, therefore a child's trust might be considered as plan beneficiary. Father could be the trustee. Then, just change the beneficiary of the plan to the child directly when you live to see the child reach the needed level of age and responsibility.

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