Marital Trust Beneficiary

[Guest fdyer]

IRA Owner passed away at 54 and the Marital Trust is the beneficiary. The surviving spouse is 67 and due all income from the IRA through the trust. Our issues are as follows:

Spouse is not required to take distributions until decedent’s 70 1/2 year, but income is required from the IRA. If minimums are taken, the amount is based on the Spouse’s age and not the decedents, correct?

Also, if distributions are taken (before decedent’s 70 ½ year) do they have to be considered required minimums, Or can the Spouse (trust) take all of the income generated as a death distribution without worry of a minimum amount until that 70 ½ year? If distribution is taken before decedent would have turned 59 1/2, is there a penalty?

I can see an accountant in my future, but I was just wondering if anyone had come across this and had any ideas.

[BPickerCPA]

Without knowing the terms of the trust it's impossible to know if the IRA is required to make minimum distributions now or when spouse attains age 70½.

In any event, the requirement for the IRA to make a minimum distribution and the requirement for the trust to make payments to the spouse are two separate and distinct issues, not related to each except to the extent that it would affect the computation of a required minimum.

Also, depending on the terms of the trust and the actions by the trustee vis a vis the trust and the IRA, there may not even be the ability to stretch out IRA distributions over anybody's life.

You need to speak to a professional, IMO.