Yes the distributions from a Rabbi Trust are clearly taxable. The trust is funded with pretax dollars and investment returns compound tax-deferred until distributed, generally at the time of an employee's retirement or termination. This is much like a 401K or other qualified plan. A rabbi trust is not a qualified plan, assets held in the trust are not current assets of the employee/beneficiary and are subject to loss or forfeiture if the employer becomes insolvent/bankrupt, in which case those assets are subject to the claims of the employers general creditors. This is the key difference as compared to qualified plans such as a 401K. The benefit is tax deferral, not tax avoidance. The risk is employer bankruptcy before payout.
It depends on the type of IRA you have. Distributions from a traditional IRA are taxable. Distributions from a Roth IRA are not taxable.
It depends on the type of IRA you have. Distributions from a traditional IRA are taxable. Distributions from a Roth IRA are not taxable.
In-kind distributions from a secular trust are generally taxed based on the fair market value of the assets distributed at the time of distribution. This value is included in the recipient's taxable income for the year. Capital gains tax may apply if the assets distributed have appreciated in value since they were acquired by the trust.
Income of a living trust is taxable to the trustees, if that's what you mean.
No, it is not taxable
Trust and Estate Income Distribution Deduction Taxable income earned by a trust or estate is taxable either to the trust or estate or to its beneficiaries but not to both. The trust or estate is allowed an income distribution deduction for income taxed to the beneficiaries. Beneficiaries receive Schedule K-1 informing them of the amount and types of income to include on their individual tax returns. Income passed through to the beneficiaries retains its original character (interest, dividends, capital gains, etc.). The income distribution deduction is the LESSER of: • Distributions less tax-exempt income included in distribution, or • Distributable net income less tax-exempt interest. Check here for more information: http://www.1041accountant.com/index.htm
Yes the income from the trust is taxable income to the owner of the trust or to the beneficiaries of the trust. Some one will have to pay income taxes on the income from the trust.
Yes, IRA distributions are taxable. You do not pay tax while the money is in the account, but you pay tax when you withdraw the money.
Yes, in most cases it is taxable. The law is different depending on the type of trust and what state you are residing in.
In general, you have the right to an accounting. You also have rights to distributions to the extent the trust agreement so provides. However, most trust agreements give the trustee the discretion on whether and when to make distributions.
Yes, All dist. over $10.00 are taxable.
YES it is possible that you could receive some taxable income from the trust that you would have to report on your 1040 federal income tax return.