Trust of IRA Beneficiary
A trust was named as beneficiary of a large IRA account for a 83year old who passed away November 2015. The beneficiary of the trust is a 82 year old. Is there any way that the IRA can be distributed over the life time of the trust beneficiary or must it be distributed over a five year period since the trust was the beneficiary?
Permalink Submitted by Alan - IRA critic on Tue, 2016-01-12 20:22
Most trusts are qualified for look through treatment. If this one is, the RMD to the trust can be based on the life expectancy of the oldest trust beneficiary using their attained age as of 12/31/2016. Even if the trust were not qualified, the RMDs would be based on the life expectancy of the decedent, who was only one year older. The 5 year rule does not apply when the IRA owner passes after their required beginning date.
Permalink Submitted by Bruce Steiner on Wed, 2016-01-13 23:37