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Article: IRA subdivided into trusts for each beneficiary satisfied RMD rules.(required minimum distribution)
- Article from:
- The Tax Adviser
- Article date:
- February 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 American Institute of CPA's. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A died in 2003, at age 68, not having reached her "required beginning date" under Sec. 401(a)(9)(C). She was survived by two daughters, B and C.
At her death, A owned IRA X, maintained with Company M. By means of a beneficiary designation, A had named trust T the beneficiary of X. T provided that the trust was revocable by A; thus, it became irrevocable on A's death. D is T's trustee. The trust is valid under state law. The custodian of X has been informed both of T's terms and the beneficiary's identity.
T provides that, at A's death, the balance, including X, is to be given to B and C in equal shares. The language does not limit the payment of B's ...