Q: How does 'Inherited IRA' work if IRA beneficiary is a rev trust? And rev trust doc lists 2 children as beneficiaries?
IRA value $700K. Can Inherited IRA live in trust with distributions to children's accounts? What/who is taxed?
A: Yes. A trust can be a beneficiary of an IRA. It is most common for the trust to pay the tax before distributing to the beneficiaries. The trust document should guide the trustee. Depending on whether or not the trust is a see-through trust inherited IRAs must be used up within either 5 or 10 years.
Nina Whitehurst agrees with this answer
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