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Level 4
posted Feb 25, 2025 10:51:21 PM

Do custodians that administer your IRA account have to report what your RMDs are to you (in this case a Trust) or the IRS?

My father’s Trust was the sole inherited IRA Beneficiary. I read a Kiplinger article on the internet that said “custodians that administer your account have to report what your RMDs are”. Do they do this for a Trust? Do they report the RMDs tthe IRS? The Trust has 4 Beneficiaries who are all different ages. Charles Schwab is the custodian never asked for the Trust document and they don’t know the ages of the beneficiaries so I don’t know how they would calculate the RMDs.

0 4 1207
4 Replies
Level 15
Feb 26, 2025 6:37:42 AM

"Do custodians that administer your IRA account have to report what your RMDs are to you (in this case a Trust) or the IRS?"

 

In this case, No. Only for IRAs maintained for the benefit of the participant, not IRAs maintained for the benefit of a beneficiary, is the IRA custodian required to offer to calculate the RMD.

Level 4
Feb 26, 2025 8:23:13 AM

Thanks! Did you mean “In this case, No. Only for IRAs maintained for the benefit of the participant, not IRAs maintained for the benefit of a TRUST, is the IRA custodian required to offer to calculate the RMD”?

Expert Alumni
Feb 26, 2025 9:16:55 AM

Per the IRS Retirement plan and IRA required minimum distributions FAQs. "although the IRA custodian or retirement plan administrator may calculate the RMD, the account owner is ultimately responsible for taking the correct RMD amount."

 

@trust812 

Level 15
Feb 26, 2025 4:05:32 PM

"maintained for the benefit of a TRUST"

 

In this case, the trust is the beneficiary.