Ringers Posted March 17, 2021 Report Posted March 17, 2021 An 80 year old client died and designated his Trust as his traditional IRA beneficiary. The beneficiaries of the Trust are his two children in their 50's and his two grandchildren. How can the trust distribute the IRA to the 4 beneficiaries so that each of them can decide the rate at which they want to withdraw from the inherited IRA? Can the Trust distribute the entire IRA amount to each Trust beneficiary in the current year and issue a 1099-R similar to that issued by the original IRA holder to each beneficiary with a 4D code, or does the Trust have to maintain the IRA funds and distribute that portion each year that each beneficiary wants to include as income, or does the Trust just distribute the entire IRA in the first year and each beneficiary includes the entire amount as income? Quote
Abby Normal Posted March 17, 2021 Report Posted March 17, 2021 Have the trustee add the beneficiaries to the IRA then split the IRA into 4 separate beneficiary IRAs. No need to distribute it all out. https://www.fiduciary-trust.com/insights/naming-trust-ira-beneficiary/ 2 1 Quote
Ringers Posted March 18, 2021 Author Report Posted March 18, 2021 Thank you Abby!!!! The article you cited is EXACTLY what i spent an hour searching for on Google but to no avail. Ringers 2 Quote
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