IRAs are Not Transferable During Your Lifetime
Can you put your IRA into your trust? NO
Can you transfer it to your spouse? NO
An IRA is an individual retirement arrangement (and you thought the "A" stood for account!). A trust is not an individual - even if it is using your Social Security number as its tax ID number. Transferring the IRA into your trust is a taxable event. You will owe income tax on the account balance transferred to the trust. Then you won’t have to worry about the IRA rules anymore because you won’t have an IRA. Your trust will simply have more assets.
An IRA is not transferable or assignable during your lifetime. You will find this in every IRA agreement, usually on the first or second page. You cannot give it to your trust, your spouse, or anyone else. It is yours until you die.
Of course there is an exception to the rule as there so often is with IRA rules. An IRA can be split between spouses as part of a divorce. The terms must be spelled out as part of the divorce decree or separation agreement. You can read more about how to split IRAs during a divorce in our white paper on the topic, found in our online store.
-By Beverly DeVeny and Jared Trexler
Content Citation Guidelines
Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.
Please be advised that prior to distributing re-branded content, you must send a proof to email@example.com for approval.
For white papers/other outflow pieces:
Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.
Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.
For Slott Report articles:
Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.
Please contact Matt Smith at firstname.lastname@example.org or (516) 536-8282 with any questions.