Guest sijs807 Posted October 21, 1999 Posted October 21, 1999 Facts: Decedent is unmarried, has an ERISA Plan and an IRA. Query: It appears that, pursuant to the terms of Prop Reg 401(a)(9)-1 D(4) and Decedent's death beneficiary designation, Decedent's ERISA plan may designate Decedent's more flexible IRA such that the death beneficiary designations for the IRA apply. Where ERISA Plans are often inflexible as to "stretchouts" and numerous plans involve numerous default provisions if the death beneficiary instruction is not specific, and where no distributions need be income taxable prior to the minimum distribution rule requirements of 401(a)(9), this planning would appear to allow we planners to consolidate the entire process through one IRA Plan with appropriate defaults. The IRA is an irrevocable trust created by Decedent with identifiable living beneficiaries, assuming no charitable or estate beneficiary. A copy of the trust can be provided to the ERISA Plan Administrator. Has anyone considered this or seen any rulings or instructions on this? The following might be an ERISA Plan death beneficiary instruction: "to the death beneficiaries x,y,and z in equal shares, under the terms of Article XX of Decedent's Living Trust, to be held in the plan and distributed as the Trustee directs, and if the assets of the plan may not be held and distributed pursuant to minimum distribution rules of Prop. Reg. 401(a)(9), then to the Trustee of Decedent's IRA acct. # ______". Any IRS authority on this? Again, the IRA is a trust for the benefit of living persons. Any reason such a distribution violates IRS policy or rules?
Recommended Posts
Archived
This topic is now archived and is closed to further replies.