Tax Reporting of IRA Beneficiary Trusts: Conduit vs. Accumulation and RMD Calculations

Designated Beneficiaries, DNI Calculations, Disqualifying Terms, Form 1041 Compliance

A live 110-minute CPE webinar with interactive Q&A


Wednesday, September 27, 2017 (in 6 days)
1:00pm-2:50pm EDT, 10:00am-11:50am PDT


This webinar will provide tax advisers to fiduciaries with detailed and practical guidance on the tax reporting complexities of trusts designated as IRA beneficiaries. The panel will thoroughly discuss the rules for measuring life expectancy for purposes of required minimum distributions (RMDs) and distributable net income (DNI) when using a look-through trust. The webinar will also address specific reporting issues on Forms 1041, 8606 and 5498.

Description

The use of a trust as an IRA beneficiary is an increasingly popular tool for both tax deferral and asset protection. These “see-through” trusts can provide valuable flexibility in a comprehensive estate plan but also carry income tax consequences and strict IRS qualification requirements.

Tax advisers and compliance professionals must understand the unique characteristics of IRA beneficiary trusts to avoid costly tax compliance mistakes.

IRA beneficiary trusts generally come in two types: “conduit trusts” and “accumulation trusts.” Conduit trusts have specific requirements for calculating required minimum distributions over the lifetime of specified beneficiaries. Accumulation trusts generally provide greater “stretch” treatment but are more complex and may result in less favorable income tax treatment.

Fiduciaries and their tax advisers must be able to identify and apply the RMD rules by identifying the designated beneficiary. RMD amounts are measured over the life expectancy of the oldest beneficiary at the time of the IRA owner/trust settlor’s death.

RMD calculations are more complex than would appear, and certain trust provisions (such as powers of appointment) can serve to deny “see-through” treatment.

Listen as our experienced panel provides detailed guidance on the operation and tax reporting of see-through IRA beneficiary trusts.

Outline

  1. Trusts as beneficiaries of IRA
  2. “Stretch” treatment of RMDs within a look-through trust
  3. Conduit vs. accumulation trust
  4. DNI impact
  5. Tax reporting challenges of IRA beneficiary trusts

Benefits

The panel will discuss these and other important topics:

  • How to recognize a valid IRA beneficiary trust
  • How to distinguish between a conduit trust and an accumulation trust
  • Identifying designated beneficiaries of the see-through trust for purposes of calculating RMD amounts based on life expectancy of “oldest beneficiary”
  • Recognizing terms in the trust document that can disqualify an IRA beneficiary trust from “stretch” treatment
  • What issues does naming a QTIP as beneficiary of the IRA trust create and how to resolve them

Learning Objectives

After completing this course, you will be able to:

  • Distinguish between a conduit trust and an accumulation trust
  • Discern the benefits of “stretch” treatments in calculating RMDs
  • Identify the challenges of ascertaining beneficiaries of the IRA beneficiary trust for purposes of RMD calculations
  • Determine specific reporting requirements and challenges of calculating income in an IRA beneficiary trust
  • Recognize trust terms that may invalidate an IRA beneficiary trust from “stretch” treatment of the accounts used to fund the trust

Faculty

Christopher J. Denicolo, J.D., LL.M., Partner
Gassman Crotty & Denicolo, Clearwater, Fla.

Mr. Denicolo is a Florida State Bar Certified Legal Specialist in Estate Planning. He is a contributing author to Leimberg Information Services and for The Florida Bar Journal. He has written and spoken extensively on the subject of planning for IRAs and other retirement plan assets, including co-authoring the book Planning for Ownership and Inheritance of Pension and IRA Accounts and Benefits in Trust Or Otherwise. He also speaks at bar organizations and presents nationally on the subject.

Edwin P. Morrow, III, Esq., Director, Wealth Transfer Planning and Tax Strategies
Key Private Bank Family Wealth Advisory Services, Dayton, Ohio

Mr. Morrow advises high net worth private banking clients on tax, trust and estate planning matters. He previously maintained a private law practice in Cincinnati and Springboro, Ohio, working in taxation, probate, estate and business planning. He is a certified specialist in estate planning, probate and trust law through the Ohio State Bar Association. Mr. Morrow frequently contributes his expertise to lectures and publications analyzing estate planning issues.


Registration per Person for Live Event

Additional lines for this conference can be purchased at 25% off. For orders of five or more lines, further discounts will apply and will be automatically reflected in the cart.

Live Webinar $147.00

Live Webinar & CPE Processing $182.00


CPE per Person on Live Event

Continuing Professional Education credit processing is available for an additional fee. CPE processing must be ordered prior to the event. To qualify for CPE you may not listen via the telephone.

This program is eligible for 2.0 CPE credits.

  • Field of Study: Taxes.
  • Level of Knowledge: Intermediate.
  • Advance Preparation: None.
  • Teaching Method: Seminar/Lecture.
  • Delivery Method: Group-Internet (via computer).
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of verification codes announced throughout the presentation.
  • Prerequisite: Three years+ business, law or public firm experience at mid-level within the organization, preparing complex trust vehicles for estate planning; supervisory authority over other preparers/accountants. Specific knowledge and understanding of Individual Retirement Accounts within an estate planning structure, IRA beneficiary trusts, and IRS regulations addressing requirements for trusts; familiarity with conduit, accumulation and RMD calculations .

NOTE: CPE credit processing for all attendees must be ordered by 2pm Eastern the day of the program to receive a Certificate of Attendance within 24 hours.


Recordings

Recorded Event

Includes full event recording plus handouts (available after live webinar).

Note: Self-study CPE and EA credits are not offered on recorded events.

Recorded Webinar Download $147.00
Available 48 hours after the live event

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Recorded Audio Download (MP3) $147.00
Available 24 hours after the live event

How does this work?

DVD (Slide Presentation with Audio) $147.00 plus $9.45 S&H
Available ten business days after the live event

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Registration Plus Recorded Event

Best value!

Live Webinar & Webinar Download $194.00

Recorded Webinar Download Only $47.00 with Registration/Webinar Combo

Live Webinar & Audio Download $194.00

Recorded Audio Download (MP3) Only $47.00 with Registration/MP3 Combo

Live Webinar & DVD $194.00 plus $9.45 S&H

DVD (Slide Presentation with Audio) Only $47.00 with Registration/DVD Combo


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Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

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Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

or call 1-800-926-7926

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or call 1-800-926-7926

EA Credit

Strafford is an IRS approved continuing education provider and this course is approved for 2 enrolled agent (EA) credit hours.

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Customer Reviews

I purchased the conference a few minutes after it began and the customer service rep was very helpful and got me signed up and logged into the conference very quickly.

Joanna Johnston

Savas Greene & Company

I liked the fact that there was more than one person presenting the material. It's nice to hear multiple perspectives.

Matt Bristow

Cover & Rossiter

Excellent seminar! It was efficient and the important topics were covered at just the right pace; no time was wasted covering information that the participants already knew.

Rhonda G. Williams, CPA

Barraclough & Associates

The conference was technical, informative and presented at a good pace.

Krystal Ching

KMH

I liked the concentration on specific issues and examples.

Edita Rimalovsky

Komisar Brady & Co.

or call 1-800-926-7926

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