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Financial Planning / Tax Strategies


Subject:  Re: taxes and trusts Date:  3/28/2014  4:42 PM
Author:  ptheland Number:  120617 of 124817

The main issue with having a trust as the beneficiary of an IRA is that typically a trust must withdraw the entire IRA balance within 5 years of the owner's death. It does not have the option to spread IRA withdrawals out over a lifetime.

I believe there are ways around this limitation, but I'm far from certain of that. I am certain that I don't know how to accomplish that within a trust and I am also certain that I don't know any potential pitfalls of setting up a trust to spread IRA distributions out over a trust beneficiaries' lifetime (assuming that it IS possible to do so).

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