SHOULD I MAKE MY TRUST THE BENEFICIARY OF MY IRA OR OTHER RETIREMENT ACCOUNT?

SHOULD I MAKE MY TRUST THE BENEFICIARY OF MY IRA OR OTHER RETIREMENT ACCOUNT?


should I make my trust the beneficiary
of my IRA or other retirement account we’re often asked about making a trust
the beneficiary of an IRA or other retirement plan such as a 401k or 403b
although everyone’s situation is different generally we recommend that you make
your spouse the primary beneficiary of any retirement plan this is because when you pass away your
spouse has certain rights with these retirement plans that no one else has
such as converting your plan to your spouse’s own plan the helps your spouse defer or minimize
income taxes on the plan you should name your trust is the
contingent beneficiary after your spouse or if you’re not married name your trust
as the primary beneficiary a properly drafted trust can protect your IRA or
other retirement plan for your beneficiaries including protection from
creditors ex-spouses and other predators who may try to take the plans from your
beneficiaries after you pass away if your trust is
drafted as a qualified designated beneficiary trust your beneficiaries
will be able to stretch distributions from your retirement plans over their
lifetimes this allows your beneficiaries to defer
income taxes on your retirement plans which can provide a substantial tax
benefit to your beneficiaries

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