* pension plans administered through Statement 67, paragraph 3 qualified trusts
Eligible retirement plans that can receive (but are not required to accept) rollovers from IRAs include qualified trusts
LAW firm Leo Abse & Cohen has appointed a qualified trusts
and estates practitioner (TEP) to its wills and estates team.
However, recently enacted final regulations reshape this theory when distributions from certain qualified trusts
(mainly pensions) are involved.
Under previous law, S corp debt could only be held by an individual (other than a non-resident alien), an estate or certain qualified trusts
. The new law allows debt held by financial institutions to also qualify as straight debt.
[check] Verify that the QI uses qualified trusts
and escrows with independent trustees and escrow holders.
402(c) provides that only distributions from qualified trusts
are eligible rollover distributions.
Educational institution QTPs must maintain contributions in qualified trusts
and must obtain IRS rulings or determinations as to their exempt status.
It should be noted that in addition to qualified individuals, Code Section 121 also applies to qualified trusts
. The type of trusts qualifying for the exclusion will also be discussed.
Participants who receive distributions directly from their plans and personally roll them over within 60 days to other qualified trusts
or IRAs may be entitled to have the amounts refunded when they file their tax returns.
While an S corporation can have no more than 35 shareholders (who generally must be individuals, estates or qualified trusts
), LLCs may have an unlimited number of corporations, partnerships, nonresident aliens, trusts, pension plans, charitable organizations or individuals as members.
A Proportional Holding Election is available to a trust pursuant to Section 259 if the trust is a "Qualified Trust
." For purposes of the Part XI Tax Calculation in respect of investments in foreign property, the effect of the election is to exempt the trust from Part XI tax and treat each beneficiary as though it holds a proportionate share of each of the trust assets directly.