Administering & Mitigating Tax Consequences for Retirement Plans Paid to Trusts

Author: Klaralee R. Charlton

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

Contrary to popular belief, naming a trust as the beneficiary of a qualified plan such as an IRA or 401(k) is perfectly permissible and does not have to result in over-payment of income tax when funds are withdrawn. After the passage of the Secure Act and Secure 2.0 Act, the ability to pass qualified plans through trusts has become even simpler. In this course, we will review the process of naming a trust as the beneficiary of a qualified plan and how the trustee should claim and administer the account to mitigate income tax consequences for beneficiaries.

Publication Date: June 2024

Topics Covered

• Pre-Death IRA Withdrawal Rule Review
• Post-Death IRA Withdrawal Options
• Claimant Process - Trust Named as Beneficiary
• IRA Withdrawals and Form 1041
• Calculating Fiduciary Accounting Income for IRAs
• Withdrawal by the Trust

Learning Objectives

• Identify the types of trusts that can claim a qualified retirement plan
• Recognize how retirement accounts are administered when claimed by a trust named as the beneficiary of the qualified plan
• Identify the changes implemented by Secure Act and Secure 2.0 Act and the associated regulations
• Identify administration and drafting techniques to mitigate income tax liability to trusts and beneficiaries
• Identify the IRA tax-free contribution permitted during working years

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
A basic understanding of qualified plans and fiduciary income tax will be helpful for listeners to gain the most from this course.

Advance Preparation
None