If there are no non-eligible designated beneficiaries (children) named on an IRA, and if a Will declares a Trust the beneficiary of the "Residuary Estate", then I assume the IRA would be considered part of the "Residuary Estate" with the Trust as the beneficiary. Is that correct?
If so, I would assume, for purposes of inheritance of the IRA, the RMDs would then be calculated based on the owner's age (RMD table) and not the Single Life Table of the beneficiaries. That is, if an eligible beneficiary were named, and not the Trust, then Single Life Table would be used. The 10-year rule would be in effect, regardless.
Does the "Residuary Estate" split the IRA pro-rata (based on the wishes in the Will) into 2 "Inherited IRAs" that would be subject to the rules outlined above?
I know the IRS has given a reprieve on RMDs from Inherited IRAs for now, but many are recommending that RMDs be taken until a final ruling.
Thanks in advance
If so, I would assume, for purposes of inheritance of the IRA, the RMDs would then be calculated based on the owner's age (RMD table) and not the Single Life Table of the beneficiaries. That is, if an eligible beneficiary were named, and not the Trust, then Single Life Table would be used. The 10-year rule would be in effect, regardless.
Does the "Residuary Estate" split the IRA pro-rata (based on the wishes in the Will) into 2 "Inherited IRAs" that would be subject to the rules outlined above?
I know the IRS has given a reprieve on RMDs from Inherited IRAs for now, but many are recommending that RMDs be taken until a final ruling.
Thanks in advance
Statistics: Posted by goodenyou — Sun Jul 07, 2024 6:04 pm — Replies 7 — Views 423