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J. Warren
J. Warren, Attorney
Category: Estate Law
Satisfied Customers: 2193
Experience:  Experience in estate planning including wills, trusts and succession planning.
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Left employment with General Re insurance and rolled 401 into

Customer Question

left employment with General Re insurance and rolled 401 into IRA account. Can or should this account be apart of our family trust? I have been told this can not be a part of a trust
Submitted: 6 months ago.
Category: Estate Law
Expert:  J. Warren replied 6 months ago.
Hello and welcome to JustAnswer. Please note:This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.An IRA can be part of a trust however it has significant tax consequences if made part of a trust. The IRS treats the change of ownership from an individual to a revocable/family trust as a taxable distribution as if the individual cashed out the IRA to themselves. This is why financial planners and estate planning attorneys recommend not contributing an IRA to a revocable trust/family trust.All my best and encouragement. Thank you for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (3 stars or more). I thank you in advance for taking the time to provide me a positive rating!
Expert:  J. Warren replied 6 months ago.
Can I answer any additional follow up questions for you or clarify anything I have written above? If not, can you please press a positive rating above this message box in the ratings section so I will be paid for my time assisting you on this matter? Pressing a positive rating will not cost any additional money - it is simply the trigger used by Just Answer to pay me for my time (pressing the middle star or the fourth or fifth star on the right are all positive rating buttons).
Expert:  J. Warren replied 6 months ago.

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