Trust as IRA Beneficiary (post SECURE0

T-IRA owner, 81, passed in 2021, naming a qualified “see through” trust as his beneficiary. His surviving spouse (who is > 10 years younger) is the sole beneficiary of the trust.

Question:
Looking for the confirmation the surviving spouse as an “EDB” can stretch payouts?

Assuming the stretch payout is available – would she would use the joint life or single life table to take RMDs? Does she recalculate annually?



Yes, she qualifies as an EDB, and can stretch RMDs over her single life expectancy from Table I. Instead of reducing the divisor by 1.0 each year, she can re enter the table (referred to as recalculation) each year to determine the new divisor, but only if she is the sole beneficiary of the trust (other than mere successor beneficiaries). She may be able to do a spousal rollover depending on the terms of the trust, and her RMDs at 72 would be much lower than RMDs from the single life table, however any creditor protection from the trust would be lost. Also, the trust is responsible for completing the owner’s 2021 RMD if that had not been done by the time of his death.



If naming a qualified “see through” trust as beneficiary would a non-spouse be allowed to stretch?



If the non spouse is an EDB such as being less than 10 years younger than decedent, disabled or chronically ill, or a minor child of the decedent, RMDs paid to the trust can be based on the  LE of the individual trust beneficiary. There could be complications if the trust has multiple beneficiaries.



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