PLR 201831004: Payee of IRA Payable to Trust Was Individual for Rollover Purposes

In PLR 201831004, Treasury ruled that an individual was treated as the payee or distribute of a decedent’s IRA.

The decedent’s IRA passed on to the trust and pursuant to the trust terms, the trust assets, including the IRA were allocated to the survivor’s trust. However, under the terms of the survivor’s trust, the individual, as sole beneficiary, was entitled to receive all of the income and principal of the survivor’s Trust to which IRA was allocated.

The decedent’s IRA was not an inherited IRA with respect to the taxpayer. In addition, the individual qualified as an individual for whose benefit the account was maintained for tax purposes. Therefore, the individual’s rollover of the assets from the decedent’s IRA into a rollover IRA in the individual’s name was a valid rollover.

See full PLR 201831004 by clicking here.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal. 

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