Can an Inherited IRA be put into a Special Needs Trust?
A disabled individual receiving SSDI, aiming to maintain SSI eligibility to keep Medi-Cal, wishes to roll an IRA inherited from a parent into a special needs trust, but faces the risk of a taxable event. This article analyzes feasible paths and considerations.
Disabled person receiving SSDI needs to maintain SSI eligibility for Medi-Cal. Has inherited her parents IRAs. I know if they were her own IRA, they could not go into the trust, but as they are inherited she cannot contribute to them. How might it be possible to move them into a SNT so as not to arbitrarily generate a taxable event? Which would be detrimental to her finances.