Administering & Mitigating Tax Consequences for Retirement Plans Paid to Trusts 

Author: Klaralee R. Charlton

Retirement accounts such as IRAs and qualified plans often represent a significant portion of a client’s wealth, yet naming a trust as beneficiary of these assets is frequently misunderstood and incorrectly administered. With the changes introduced by the SECURE Act and SECURE 2.0, the rules governing post death distributions have become more complex—making careful planning and administration essential to avoid unnecessary income taxation and compliance missteps.

This course provides tax and financial professionals with practical guidance on the taxation and administration of retirement plan assets payable to trusts. Participants will explore how beneficiary designations interact with trust terms, how trustees should properly claim and administer retirement accounts, and how fiduciary accounting and Form 1041 reporting apply to retirement plan distributions. Special emphasis is placed on planning techniques that mitigate income tax exposure while preserving beneficiary intent and complying with statutory requirements.

Attendees will gain actionable strategies they can confidently apply when advising clients, serving as trustees, or administering estates and trusts holding retirement plan assets.

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2029 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

Publication Date: June 2026

Topics Covered

• Overview of retirement plan beneficiary designations and trust planning
• Pre‑death and post‑death IRA distribution rules
• SECURE Act and SECURE 2.0 impact on trusts as beneficiaries
• Claiming qualified plan assets when a trust is named beneficiary
• Form 1041 reporting of retirement plan distributions
• Fiduciary accounting income calculations for IRAs

Learning Objectives

• Identify legal and tax considerations when naming a trust as beneficiary of an IRA or qualified retirement plan
• Apply SECURE Act and SECURE 2.0 rules to determine required post‑death distributions payable to trusts
• Differentiate conduit and accumulation trusts and evaluate how each affects taxation and distribution timing
• Implement trustee procedures for properly claiming, administering, and reporting retirement plan assets held in trust
• Evaluate strategies to minimize income tax consequences on retirement plan distributions while satisfying fiduciary obligations

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