Can One Put an IRA or Retirement Pension Into Trust Without Triggering A Taxable Event

Can One Put an IRA or Retirement Pension Into Trust Without Triggering A Taxable Event

No. One cannot put their individual retirement account (IRA) in a trust while living; however, naming the trust as beneficiary is acceptable. If one takes an IRA out of their name, it will trigger a taxable event, even though the trust may be tax non-obligatory. The taxes would occur before the assets are put into the trust. One can, however, name a trust as the beneficiary of one's IRA and dictate how the assets are to be handled after death. This applies to all types of IRAs, including traditional, Roth, SEP, and SIMPLE IRAs.

    • Related Articles

    • How Should a IRA & Roth IRA Be Handled

      IRAs can remain in a personal name. Even if the IRA is within the trust's name it will incur early withdrawal fees. If one still desires to place the IRA in the trust's name, just ask the IRA management to change the name on the account to that of ...

    • Lawful Money and Pension Checks

      Any form of deposits: pension checks, federal employee pensions, IRA and more are all indorsable in lawful money, even if given by direct deposit. Request a digital copy of the checks or pay stubs and indorse with the lawful money verbiage. Keep the ...

    • Are Unclaimed Funds (Tax or Foreclosure) Taxable

      Yes. Unclaimed property is not taxed while it is filed as unclaimed; however, when it is reclaimed, the property may be considered taxable income. Some unclaimed funds such as investments from a 401(k) or an IRA can be reclaimed tax-free.

    • What States Tax Vehicles and Can These Taxable Events Be Avoided

      Yes, unfortunately a vehicle property tax must be paid because it is based on the vehicle’s assessed value if it were considered Clean Retail Value (CRV) according to the NADA Blue Book Value Guide. Therefore, even if the vehicle was purchased for ...

    • How Does One Transfer Assets (Home, Car, Etc.) Into Trust

      If the Grantor is the equitable/legal title holder of the asset, it may be granted into the Trust (without a necessity for probate). No matter the asset, it can be granted into the Trust's ownership. Passing assets to heirs can be done by a ...