Surprise, the final IRS Secure Act Regs actually contain at least one beneficiary RMD simplification from the proposed Regs.
The proposed Regs included a provision in which an older beneficiary of a post RBD decedent taking RMDs based on the age of the younger plan owner was still required to drain the account in the year that their own RMD divisor fell below 1.0. Therefore, such a beneficiary had to track RMD divisors for both the decedent and themselves. Some of these beneficiaries are EDBs and others fall under the 10 year rule.
The final Regs eliminate this requirement to drain the account when the older beneficiary's divisor fell below 1.0.
It will be interesting if any other examples of common sense surface when the 260 pages of the final Regs are totally reviewed by consultants.
The proposed Regs included a provision in which an older beneficiary of a post RBD decedent taking RMDs based on the age of the younger plan owner was still required to drain the account in the year that their own RMD divisor fell below 1.0. Therefore, such a beneficiary had to track RMD divisors for both the decedent and themselves. Some of these beneficiaries are EDBs and others fall under the 10 year rule.
The final Regs eliminate this requirement to drain the account when the older beneficiary's divisor fell below 1.0.
It will be interesting if any other examples of common sense surface when the 260 pages of the final Regs are totally reviewed by consultants.
Statistics: Posted by Alan S. — Tue Jul 23, 2024 12:00 pm — Replies 34 — Views 4808