Surgent's Top 20 Effective Strategies for Avoiding RMD Mistakes and Penalties: Updated for the Proposed RMD Regulations, SECURE Act 2.0

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