Surgent's Top 20 Effective Strategies for Avoiding RMD Mistakes and Penalties: Updated for the Proposed RM

Overview

Required minimum distributions (RMDs) must begin for the year in which the account owner reaches age 72 - later if they were born in 1951. RMDs must also be taken from inherited accounts, and the process for determining RMDs for these accounts is more complex than those that apply to RMDs for non-inherited accounts. Failure to comply with the RMD rules will result in the account owner owing the IRS an excess accumulation penalty on any RMD shortfall. Interested parties must understand the compliance requirements that apply to RMDs to be able to assist in ensuring that penalties are avoided. Additionally, the recent changes that affect RMDs must be considered when advising clients about their RMD obligations.

Highlights

• Who qualifies for the waiver of the RMD excise tax for 2021, 2022, and 2023?
• The rollover deadline for 2023 age 73 RMD
• Coverage of applicable provisions of SECURE Act 2.0
• What is the required minimum distribution for an account owner?
• What is the required minimum distribution for a beneficiary IRA?
• Key explanations of RMD regulations
• The types of accounts that are subject to the required minimum distribution rules
• The parties that are subject to the required minimum distribution rules
• Exceptions and special considerations for required minimum distributions
• Rollover and transfer rules in an RMD year
• The various responsibilities for interested parties
• Qualified charitable distributions and how they are coordinated with RMDs and IRA contributions
• How the 10-year rule works for certain beneficiaries

Prerequisites

None

Designed For

All practitioners advising clients on these complex issues

Objectives

• Be familiar with the recent changes to RMD rules
• Define an RMD
• Calculate RMDs
• Identify the individuals and accounts that are subject to the RMD rules
• Recognize the RMD mistakes that can occur, how to avoid such mistakes, and how to correct such mistakes where possible

Preparation

None