advertisement
Apr 1, 2010 12:00 PM
Chase Away IRA Spousal Rollover Demons
Stop raising Treasury regulations as a barrier when a trust or estate is the named beneficiary. Here's why
When IRA custodians get nervous, they often need a private letter ruling to calm them down and tell them that what they're doing — or planning to do — is just fine. And that's what's happened over the past eight years in the context of whether to permit surviving spouses to make IRA rollovers when a trust or estate is named as the IRA beneficiary. Favorable PLRs. Lots of them. Over 75 of them since the final regulations governing required minimum distributions (RMDs) were promulgated in 2002. PLRs involving not only IRAs under Internal Revenue Code Section 408, but also under other types of retirement plans under IRC Sections 401 and 403(B). All saying the same thing: Surviving spouses can make IRA rollovers, even though a trust or estate is named as the retirement plan beneficiary, as long as the surviving spouse is the “real” beneficiary. The surviving spouse is treated as the “real” IRA beneficiary when the surviving spouse holds all the strings needed to gain unfettered access to the decedent's IRA and then pulls those strings.
Then why the concern?
Sign in to
view the full article
Not a subscriber?
Subscribe & Save
Get immediate access to Trust & Estates onlineSubscriber Benefits
Learn more about Trust & Estates magazine, online article access and our free enewsletters.
Topics of Interest
| Estate Tax | Donor Advised Funds |
| GSTs | Family Offices |
| Private Foundations | Life Insurance |
| 2010 Tax Act News | Industry Trends Surveys |
E-Newsletter Signup
Poll
Topics of Interest
| Estate Tax | Donor Advised Funds |
| GSTs | Family Offices |
| Private Foundations | Life Insurance |
| 2010 Tax Act News | Industry Trends Surveys |
E-Newsletter Signup
advertisement
T&E eNewsletters
Wealth Watch 
Wealth Watch is a free e-newsletter delivered twice a month with expert advice on wealth management from Trusts & Estates.
Latest from Wealth Watch
Tech. Review
Technology Review is a free monthly e-newsletter from Trusts & Estates and nationally renowned expert Donald H. Kelley. It is geared to keeping estate planning lawyers current on the latest tech news they can use.
Latest from Tech. Review
Philanthropy Tax Guide
Each month, Conrad Teitell reports on and analyzes as important tax development governing charitable contributions, including how to maximize the benefits and avoid the pitfalls.
Latest from Conrad Teitell
2011 Trust Glossary
Click here to download the 2011 Trust Glossary
50 Years Ago This Month
| 50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb. |
Conrad Teitell's Guide to Tax Benefits For Charitable Gifts
Click here to view the most up to date guide (September 2011)
Press Releases
advertisement
advertisement
