Trust as IRA Beneficiary

If a Trust is named as the beneficiary of an IRA, is there any way to set up Beneficiary IRA’s for the beneficiaries of the Trust? Also, RMDs were not taken prior to the death of the IRA owner. If the remaining RMD is paid to the trust as the benficiary, who pays the taxes? The Trust, or the beneficiaries of the Trust?



Beneficiary IRA accounts for trust beneficiaries can only be set up if the trust is allowed to terminate. Until it terminates, all distributions must be paid to the trust. The terms of the trust then determine if the trust will retain the distributions and pay taxes at the higher trustee rates, or whether the RMDs or other distributions are passed through the trust to the individual trust beneficiaries to be reported on their own tax returns.



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