Question

Which of the following statements is NOT a requirement for the beneficiaries of a trust to be treated as a designated beneficiary of a qualified plan or IRA?

Question 3 options:

	1) The beneficiary of the trust is named on the decedent's retirement account as a named beneficiary.
	2) The trust is irrevocable at the participant's death.
	3) The appropriate documentation is provided to the plan administrator.
	4) The trust is valid under state law.

Question 4 (3 points)

Jake has named a trust as the beneficiary of his qualified retirement plan. The trust beneficiaries include his 4 children ages 4 through 18, and his nephew, age 30. For the trust beneficiaries to be treated as the designated beneficiaries of the plan, the trust must meet all of the following requirements EXCEPT

Question 4 options:

	1) the trust beneficiaries must not be identifiable from the trust instrument
	2) the trust must be valid under state law
	3) the appropriate documentation has been provided to the plan administrator
	4) the trust must be irrevocable or become irrevocable when Jake dies

Answer 1

Ans.3). Option 1) is correct.

The beneficiary of the trust being named on the decedent's retirement account as a named beneficiary is not a requirement for the beneficiaries of a trust to be treated as a designated beneficiary of a qualified plan or IRA.

Ans.4). Option 1) is correct.

If the trust beneficiaries are not identifiable from the trust instrumentor then the trust beneficiaries cannot be treated as the designated beneficiaries of the plan