Required minimum distributions (RMDs) must be taken from certain tax-deferred retirement accounts, starting when the account owner reaches their applicable age. The RMD rules are complex and must be simplified to help ensure clients understand them.
DESIGNED FOR
Accounting and finance professionals who want to understand RMD concepts and how RMDs work
BENEFITS
- Understand what Required Minimum Distributions (RMDs) are, why they exist, and the accounts to which they apply
- Recognize the important deadlines for starting and taking RMDs, including the consequences of missing an RMD deadline and how to avoid penalties
- Calculate RMDs using IRS tables, account balances, and other impacting data
- Recognize common scenarios where RMDs apply for IRA owners, employer plan participants, and beneficiaries.
HIGHLIGHTS
- How SECURE Act 1.0 and SECURE Act 2.0 changed the RMD rules
- What is an RMD?
- Who is subject to RMDs?
- The types of accounts subject to RMDs
- How to calculate an RMD
- How to determine if a distribution can be an RMD
- How to determine which life expectancy table must be used when calculating an RMD
- The rollover and transfer rules during an RMD year
- IRS penalties for non-compliance with RMD regulations
- Applying RMD strategies to different plan types
- When RMDs can and cannot be aggregated
- How to correct an RMD shortfall
- How to get a waiver of the excise tax on an RMD failure
- The tax implication of an RMD
- How to donate an RMD tax-free
- How to determine the RMD rules that apply to a beneficiary
ADVANCE PREPARATION
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