Don’t Put Your IRA in Your Trust #ira #irs

31 Mar 2023 · 0 min

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0:29

In this brief advisory video, the speaker warns that transferring tax‑deferred retirement and health accounts—such as 401(k)s, IRAs, tax‑deferred annuities, Health Savings Accounts (HSAs), and Medical Savings Accounts (MSAs)—into a trust triggers the IRS to treat the transfer as a taxable distribution, requiring the account holder to pay income tax on the full amount. Instead, the speaker advises naming the trust as the beneficiary of these accounts. By doing so, the account owner retains control over how distributions are made to heirs and can potentially shield the assets from creditors. The video ends with a call to follow the creator for more financial wisdom.

Unless you enjoy dealing with the IRS, do not put these things in your trust. Your 401, your IRA, tax-deferred annuities, health savings accounts, medical savings accounts. If you transfer any of these types of accounts to your trust, the IRA will treat them as distributions and you'll have to pay tax on the entire amount. Instead, make the trust the beneficiary of all those accounts. Then you control the way those accounts are distributed to your heirs and you could make it so that they're protected from creditors. Follow me for more wiseness.