Trust & Roth IRa

Forum|Forum|1 year ago
January 30, 2025
1 reply
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Probably an easy question. Does a trust where the only asset is a Roth IRA need to file taxes?

Not A Product Question

ThomasM125

Assuming there was no taxable income and the gross income is less than $600 per year then you would not have to file a trust tax return. There can be taxable income from a Roth IRA if there is a premature distribution (made before age 59 1/2) or a distribution less than five years from the date contributions were first made. In those instances, any distribution of earnings would be subject to tax and penalties.

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dmertz

Employee

A distribution payable to a trust would be after the death of the participant, so there would be no age requirement for determining if the distribution was a qualified distributions. Only the 5-year holding period would then apply in determining whether a distribution of earnings from the Roth IRA to the trust would be taxable.