Get Form 5305-R (Rev. January 2000). Roth Individual Retirement Trust Account

By naming a non-qualifying Trust as your IRA beneficiary you will lose the stretch payout to spouse and children over their life expectancies. Retirement benefits left to the Trust will be taxed sooner and at a higher rate (most likely) than if the benefits had been paid directly to the spouse or children.

Inherited Roth IRAs Withdrawals of contributions from an inherited Roth are tax free. Most withdrawals of earnings from an inherited Roth IRA account are also tax-free. However, withdrawals of earnings may be subject to income tax if the Roth account is less than 5-years old at the time of the withdrawal.

Traditional IRA for Nonworking Spouse - Form 5305-A may be used to establish the IRA custodial account for a nonworking spouse. Contributions to an IRA custodial account for a nonworking spouse must be made to a separate IRA custodial account established by the nonworking spouse.

Inherited Roth IRAs Withdrawals of contributions from an inherited Roth are tax free. Most withdrawals of earnings from an inherited Roth IRA account are also tax-free. However, withdrawals of earnings may be subject to income tax if the Roth account is less than 5-years old at the time of the withdrawal.

When a trust is named as the IRA beneficiary, the trust inherits the IRA when the IRA owner dies. The IRA is then maintained as a separate account that is an asset of the trust.

Pouring your Roth assets into a trust after your death can be a good idea—as long as you've chosen the right type of trust and your beneficiaries are specifically named in the trust. A conduit trust takes out the beneficiary's required minimum distributions (RMDs) each year.

You cannot put your individual retirement account (IRA) in a trust while you are living. You can, however, name a trust as the beneficiary of your IRA and dictate how the assets are to be handled after your death.

The assets are transferred into an Inherited Roth IRA held in your name. At any time up until 12/31 of the tenth year after the year in which the account holder died, at which point all assets need to be fully distributed.