Keep in mind, if you don’t take an RMD in that first year, you’ll have to take two distributions the next year. After that, you’ll need to take a Required Minimum Distribution each year to stay in line with the IRS rules. First-year RMD exception for certain plans:If you are s...
The Proposed Regulations apply a birthdate rule to determine whether an individual’s required beginning date (RBD) is based on age 70½ or age 72. There was some ambiguity in the statutory language as to whether an individual was required to survive to age 70½ in order to have...
IRA Transfer Rules When considering an IRA transfer, keep the following IRS rules in mind:2 All distributions may be transferred over, except therequired minimum distribution (RMD)and any distribution of excess contributions and related earnings. The transfer must be deposited in the new account wit...
You can leave funds in your Roth IRA account as long as you live. Unlike traditional IRA and 401(k) plans there is no required minimum distribution. This makes a Roth IRA a very effective inheritance vehicle because you may potentially reduce or eliminate the taxes your beneficiaries will have...
This ruling is also directly relevant to owners, particularly in states that would require the escheatment of IRAs before the owner achieves a required minimum distribution (RMD) event (i.e., turning 70½ years old). In particular, Pennsylvania has recently amended its unclaimed property law ...