[USER]

.. He had/has a trust with a bank. There were retirement accounts where the beneficiary was the “trust”.

I’ve been working with the broker explaining stuff and sending in trust documents etc.

All of the sudden, the retirement amounts landed into my personal funds account rather than my father’s trust account. I only discovered this today after logging in.

Will it trigger a tax event for me if I try to liquidate and put the funds into my father’s trust account?

I am so clueless as to what is going on with this probate nonsense!

[Robert]

Get with a tax lawyer or tax accountant IMMEDIATELY. And spend the money to get a good one. My tax lawyer cost me between 5-10K, but his advice saved me a 100K tax bill from the IRS.

[Tom]

IANAL so seek proper advice from a professional.

I was told if retirement account beneficiaries are listed individually – they have 10 years to withdraw the amount (ie each beneficiary can withdraw annually to avoid jumping into a higher bracket). However, if the beneficiary is the trust as your father arranged, it all must be distributed in one year

[Dmitriy]

There is a grace period for these type of mistakes. Excess contributions.

If you exceed the 2022 IRA contribution limit, you may withdraw excess contributions from your account by the due date of your tax return (including extensions). Otherwise, you must pay a 6% tax each year on the excess amounts left in your account.

[Author]

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