bmpasternack
Returning Member

Retirement tax questions

Perhaps my original statement of the question was unclear.  So let me restate the situation I am trying to address.

Person A has a Roth and they are trying to determine the best way to name beneficiaries in order to minimize any taxes and keep the record keeping simple.  So A could name Person B as primary benficiary and Person C, a child of B, as backup or the primary could be Person B's Revocable Living Trust, which specifies furure dsitributions of assets to C.  If B dies before A, upon A's death would the Roth be inherited by the Trust if the Trust was named as primary beneficiary of A's Roth or would it go to C, the backup beneficiary.  The reason for considering this approach is to ensure that C does not get a windfall inheritance at the time of A's death as opposed to getting payouts from the Trust over time.