What is a Trust? Can I put my retirement account in my Trust?

Simply put, no. Any investment which lists a designated, named beneficiary will not be included in your Living Revocable Trust. This includes 401s, IRAs, Roth IRAs, SEP IRAs, 403bs, life insurance and more. Annuities are excluded unless you registered a non-retirement annuity in the name of your Living Trust.

Remember, retirement accounts are tax-deferred and are not taxed until you physically withdraw funds. Life insurance proceeds are not taxed to the recipient. Life insurance IS included in one’s total estate. This matters if the estate is subject to estate taxes. In 2021, estates less than $11.7 Million (per person) are not subject to estate taxes by the Federal government. States vary regarding any estate taxes, however there is none in the state of California. Below is a common sample breakdown of an estate.

Source Link

The information contained herein is based on our understanding of current tax law. The tax and legislative information may be subject to change and different interpretations. We recommend that you seek professional legal advice for applicability to your personal situation. As required by the IRS, you are advised that any discussion of tax issues in this material is not intended or written to be used, and cannot be used, (a) to avoid penalties imposed under the Internal Revenue Code or (b) to promote, market or recommend to another party any transaction or matter addressed herein.