- Format:Webinar
- Education Type:BCU Webinars
- Line of Authority:N/A
- Language:N/A
- Credit Hours:N/A
When the original SECURE Act of 2020 became effective, the two main impressions were that most nonspouse beneficiaries could no longer take Single Life Expectancy payouts, but instead had to have their Inherited IRA closed in 10 years. And it appeared the beneficiaries could skip distributions the first 9 years, regardless of the owner's RMD status at death.
This was contrary to the rules prior to 2020 when beneficiaries of owner's who were in RMD payout at death, had to start distributions the year after the owner died. The Proposed Regulations of 2022 to correct this were finalized in 2024 to correct.
Effective 2025, all non-eligible nonspouse beneficiaries of owners who died in RMD status beginning in 2020should begin taking death distributions in 2025 or they will be subject to an IRS penalty of up to 25%. This informational two-hour webinar will answer the who, when, and how questions of calculating RMDs to beneficiaries for 2025 and beyond. A Sample Letter to beneficiaries to inform them of the rule change and their RMD requirements will be included.
What You'll Learn
- What is meant by the “Required Beginning Date” to determine which IRA owners are in RMD status at death?
- Do beneficiaries who chose to skip their RMDs in 2021-2024 have to make them up?
- How do we calculate the divisor for beneficiaries of owners who died beginning in 2020?
- What are the three classes of beneficiaries to determine their payout options?
- What are the new distribution rules regarding a surviving spouse setting up an Inherited IRA?
- Do we use the owner’s age or the beneficiary’s age on the Single Life Table to obtain the divisor for RMD purposes?
- What are the rules for successor beneficiaries when the original owner died before 2020 or beginning in 2020?
- What penalties may be imposed if the beneficiary does not begin death distributions in 2025?
