Any way to escape RMD?

[Jakyasar]

Hi

Asking for a CPA friend of mine.

Corporation A.

Joe's year of birth is 1952. So Joe will be 73 in 2025

Joe owns 10%, Joe's wife owns 1% and Joe's son owns 89%

Joe will sell 8% to his son in 2023.

Is there anything I cannot think of that would allow Jow to defer RMD until forever?

Also, assuming Joe needs to start RMD, 2025 is the first year, correct?

Thanks

[Lou S.]

Joe can go to work for an unrelated company and roll his balance into their plan before 2025.

If Joe and Joe's wife's combined ownership drops below 5% and Joe's son is married, Joe's son could transfer his shares to his spouses name. Then Joe would no longer be a 5% owner since you don't double attribute.

Or Joe, Joe's wife, and Joe's son can sell off such that Joe no longer owns directly or indirectly more than 5% of the business but continues to work there.

So yes there are ways, just probably not the most practical.

 

 

[Jakyasar]

Hi Lou

Great ideas.

Thank you