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It is possible to name a trust as the beneficiary of an IRA. To do so, the IRA creates a trust, then names it as the beneficiary of the IRA. The result is that the trust receives any funds ...
4. Take the tax break if you’re entitled to it. An inherited IRA may be taxable, depending on the type. If you inherit a Roth IRA, you’re free of taxes.
If the deceased owner of the IRA had a RMD, then the beneficiary's annual distribution will be based on their own life expectancy, with all of the money withdrawn by the end of the tenth year. And ...
The most tax-effective way to handle an inherited IRA is to open a beneficiary IRA. In this scenario, the IRA you inherit is transferred to a different IRA that lists you as the beneficiary.
You can name a beneficiary or multiple beneficiaries to receive the income from … Continue reading → The post Estate as Beneficiary of IRA appeared first on SmartAsset Blog.
Naming your kids as beneficiaries could mean putting a significant amount of money into the hands of an 18-year-old — particularly a grieving one — or even someone younger.
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