Qualified Trust
Definition of 'Qualified Trust'A tax-advantaged fiduciary relationship between an employer and an employee in the form of a stock bonus, pension, or profit-sharing plan in which the underlying beneficiary may use his or her life expectancy to determine required minimum distribution amounts. Section 401(a) of the Internal Revenue Code authorizes and sets forth the requirements for a qualified trust. |
|
Investopedia explains 'Qualified Trust'To be qualified, a trust must be valid under state law, must be irrevocable (or become irrevocable when the retirement account holder dies) and must have identifiable beneficiaries. Furthermore, the IRA trustee, custodian or plan administrator must be provided with a copy of the trust instrument. If a qualified trust is not structured correctly, disbursements will be taxable. |
Related Definitions
Articles Of Interest
-
6 Important Retirement Plan RMD Rules
Paying taxes is inevitable - that's why you need to learn about the rules for required minimum distributions. -
Where can I find information on how to distribute my deceased parent's assets?
Related information can be found in IRS publication 590. See page 32 (bottom right hand corner) and page 35. If the trust is qualified, as described on page 35, distributions may occur over the ... -
Preparing For Retirement Plan RMD Season
Paying taxes is inevitable - that's why you need to learn about the rules for required minimum distributions. -
Roth Vs. Traditional IRA: Which Is Right For You?
To answer this question, you need to consider several of the factors we outline here. -
What are the requirements that a trust needs to meet to be qualified?
The requirements that a trust must meet to be qualified are as follows: The trust must be a valid trust under state law or would be except for the fact that there is no corpus. The ... -
Are You Really Retired Just Because You Stopped Working?
Retirement doesn't have to mean the end of working, it can be just the end of working to get by every week. Retirement should be about working only if you want to, not because you have to. -
How To Cut Your Mutual Fund Fees By Up To 90%
Most mutual funds don’t come close to beating the indexes they’re compared against. And yet they carry steep fees for active management. Find out how a little research and effort can cut your ... -
5 Ways To Protect And Grow Your Retirement: Whether You’re 45 Or 75 Or Somewhere In Between
Investors who take steps now can shield themselves from the coming challenges thrust upon retirees. -
What's The Point Of Owning All This Stuff?
Are you a portfolio hoarder, hanging on to poor performers and investments that no longer match your objectives? It's time to purge those investments and put that money to use to match today’s ... -
4 Benchmarks To Keep Your Retirement Finances On Track
In today’s near-zero percent interest rate environment the old ways of investing for retirement no longer apply. Learn the sober reality of the fundamental changes we all need to make to ensure ...
Free Annual Reports