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This quickly becomes a complicated question depending upon many facotrs
including, among others, the terms of the trust, the types and ages of
trust beneficiaries, etc, etc. Pay the money to get the right answer from
someone well versed.

For example, some of the information provided to you in this thread is
changing due to this year's tax bill.

John

David Efflandt wrote:
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thanks.

On Thu, 31 Aug 2006 14:59:56 -0500, po.ning[at]gmail.com <po.ning[at]gmail.com> wrote:
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If you name your spouse as beneficiary, she can transfer it directly into
her own IRA and will not be taxed until she takes distributions.

A non-spouse beneficiary can transfer it, but has to remain in (name of
the deceased) for benefit of (the beneficiary) to maintain its tax
deferred status. If a non-spouse transfers it to an account in their own
name, it is immediately taxable.

I believe I read that there is no benefit to leaving a retirement account
to a trust. Maybe it is considered an immediately taxable event, because
a trust is a non-person not eligible for such an account. The tax on such
a lump sum could take a bite out of it (at higher tax bracket) and future
earnings would be taxable.

I have a 401K plan. I need to designate beneficiaries. Should I name
my revocable trust, or name my wife specifically.