<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"><head><meta http-equiv=Content-Type content="text/html; charset=us-ascii"><meta name=Generator content="Microsoft Word 14 (filtered medium)"><style><!--
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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:11.5pt;font-family:"Arial","sans-serif";color:#3F4549'>Hello Everyone: I have a client who wishes to leave her entire estate, including IRA and 401(k) account, to a trust for her 2 children. She wants the trust assets distributed outright to them when the youngest reaches the age of 35<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.5pt;font-family:"Arial","sans-serif";color:#3F4549'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.5pt;font-family:"Arial","sans-serif";color:#3F4549'>MY QUESTION: what happens to the Trust's IRA at the termination of the trust when the beneficiary reaches age X? For example, let's say a child is the beneficiary of a trust (that meets the 1.401(a)(9) look through rules) and the trust says that all the assets in the trust will be distributed to the child when he attains age 35. Would the IRA have to terminate and distribute all of the assets to the beneficiary at that time (resulting in a potentially significant tax liability at that time), or could the tax deferral (stretch) be allowed to continue by transferring the remaining IRA account to an inherited IRA in the name of the beneficiary when he attains age 3r - thus allowing continued withdrawals over the beneficiary's remaining life expectancy<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.5pt;font-family:"Arial","sans-serif";color:#3F4549'>Thank you!<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.5pt;font-family:"Arial","sans-serif";color:#3F4549'>Margaret</span><o:p></o:p></p><p class=MsoNormal>--<o:p></o:p></p><p class=MsoNormal>Law Office of Margaret Delp<o:p></o:p></p><p class=MsoNormal>2815 Howard Road, Second Floor<o:p></o:p></p><p class=MsoNormal>P.O. Box 292<o:p></o:p></p><p class=MsoNormal>Langley, WA 98260<o:p></o:p></p><p class=MsoNormal>(360) 579-4530 (telephone)<o:p></o:p></p><p class=MsoNormal>(360) 512-3114 (facsimile)<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>This email is covered by the Electronic Communications Privacy Act, 18 U.S.C. Sections 2510-2521, and is legally privileged. This email was sent by an attorney or her agent, is intended only for the addressee's use, and may contain confidential and privileged information. If you are not the intended recipient, you are hereby notified that any retention, dissemination, reproduction or other use of the information contained in this e-mail is strictly prohibited. If you have received this email in error, please delete it and immediately notify the sender by reply email. Thank you for your cooperation.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>