Under what circumstances does a trust as IRA beneficiary trigger a taxable event?
December 1999 Two answers to that. The trust doesn’t in itself trigger a taxable event. But unless specifically qualified, it can force an accelerated distribution because it is not a “designated beneficiary.” However, specially designed trusts can be “looked through” and treated as an individual beneficiary, permitting stretch-out of distributions.
Related Questions
- What beneficiary distribution options are available following the death of an IRA holder when a trust is named as the beneficiary of an IRA?
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- Under what circumstances does a trust as IRA beneficiary trigger a taxable event?
