IRA in a Trust - withholding taxes | Ed Slott and Company, LLC

IRA in a Trust - withholding taxes

My two sons will be inheriting a trust which will contain my IRA payable to them as beneficiaries over ten years. When they withdraw money each year, should they have taxes withheld? Will these withheld taxes show up on the K1s, so they can report it on their personal tax returns? Thank you!

Income to be passed through to beneficiaries will not have withholding at the trust level or by the IRA custodian. Therefore there will be no withholding shown on the K 1 and the beneficiaries will have to either pay quarterly estimates or withhold from other sources.  When the trustee of the trust requests an IRA distribution they should be sure to decline withholding.


Find members of Ed Slott's Elite IRA Advisor GroupSM in your area.
We neither keep nor share your information entered on this form.

I agree to the terms and services:

You may review the terms and conditions here.