RMD | Ed Slott and Company, LLC

RMD

2022 RMDs and and the Required Beginning Date: Today's Slott Report Mailbag

Question: As we did 2 years ago, will we be able to skip taking a 2022 required minimum distribution (RMD) without penalties? Answer: Sorry, but RMDs are in full effect for 2022. The CARES Act waived RMDs in 2020, but that was a one-time deal. RMDs were back in play for 2021, and are still required for 2022 as well.

Moving Non-IRA Accounts and the Proposed RMD Regulations: Today's Slott Report Mailbag

Question: I am 79 and make SEP-IRA withdrawals annually as required. I also have several regular (non-IRA) accounts. One fund I own throws off tremendous taxable capital gains every year. Is there any way I can move it into an IRA account without selling it first in a taxable transaction? Thanks.

THE RULE-OF-55 AND RMD CONVERSIONS: TODAY’S SLOTT REPORT MAILBAG

Question: Hi, I am age 50 and am targeting retirement at age 55. My current employer is selling the division I work for, and I see the potential that I could be laid off at, say, 52. If this were to happen, could I join a new employer with a 401(k) plan, roll my old 401(k) over to the new plan, and then take a distribution (both the rolled-over funds and the new 401(k) funds) under the rule of 55? The statute suggests that I could do this, but I have seen comments that the rollover funds wouldn't count.

Ed Slott's Elite IRA Advisor Group℠ Topics of Conversation - Kansas City

Last week in Kansas City, the Ed Slott team hosted our first in-person training program for members of our Elite Advisor Group since late 2019. While we managed to stay in contact with everyone via virtual meetings for the last two years, it was good to again see people face-to-face. The conversations were lively and interaction among the members during the breaks was spirited.

IRS Needs to Clarify Annual RMD Requirement under the New Regulations

Just when we thought we understood the new IRS regulations on required minimum distributions (RMDs), here comes more uncertainty. As we have reported, the IRS threw everyone a curveball with its interpretation of the 10-year payout rule under the SECURE Act in its proposed regulations issued on February 23. For most non-spouse beneficiaries, the SECURE Act replaced the life expectancy payout rule (also known as the “stretch IRA”) with a new 10-year rule. It is clear that the 10-year rule requires that the entire IRA account be emptied by December 31 of the 10th year following the year the IRA owner died.

Required Minimum Distributions (RMDs): Today's Slott Report Mailbag

Question: I am 75 years old and contributing to my company’s 401(K) plan. I have not taken an RMD from my 401(K) utilizing the “still-working exception.” I just retired on April 30, 2022. My question is: Do I have to take an RMD from my 401(K) for the current year 2022, or am I allowed to wait until next April 2023 to commence taking the first RMD from the 401(K) plan? John

RMD Withdrawals and the 10-Year Rule: Today's Slott Report Mailbag

Question: I’m 68 years old. I would like to start IRA withdrawals. What are the rules for withdrawing before my RMDs are required at age 72? Thanks, Bob

First Dollars Out Rule and the Still-Working Exception

For those who have 401(k)s or other employee retirement plans (but not SEP or SIMPLE plans), the required beginning date (RBD) for when required minimum distributions (RMDs) are to begin is the same as for IRA owners – April 1 of the year after a person turns 72. However, if the plan allows for the “still-working exception,” the RBD can potentially be delayed if a worker is still working for the company where they have the plan. (Also, the worker cannot own more than 5% of the company in the year they reach age 72.)

“Missed” 2021 RMD Within the 10-Year Rule? Our Advice on How to Proceed

The new SECURE Act regulations, released in late February, created a firestorm of confusion and complexity. We have addressed concerns in recent Slott Report articles and will continue to do so as issues arise. However, as of now, one question has emerged as the most popular: How do beneficiaries handle “missed” 2021 RMDs within the 10-year payout rule?

New IRS SECURE Act Regulations and Missed RMDs: Today’s Slott Report Mailbag

Question: Ed, I read your 2/28/22 Slott Report on the updated SECURE Act information for non-eligible designated beneficiaries (non-EDBs) that requires annual RMDs to continue if the original owner was taking them prior to his death and also requires the account to be emptied by the end of year 10.

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