Loan & Distribution Specialist AimPoint Pension
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Compass
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Regional Vice President of Sales The Retirement Plan Company
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Bates & Company, Inc.
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AimPoint Pension
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Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
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SECURE 2.0 Changes for 457(b) Plans
National Tax-Deferred Savings Association [NTSA] [Guidance Overview] Mar. 22, 2024 "What changes did SECURE and SECURE 2.0 make to the significance of age 70½? Lower the in-service distribution age ... Increase in the RMD beginning age ... What 457(b) plan provisions related to age 70½ did not change? Normal retirement age (NRA) ... Discussion of special 3-year catch-up ... Application of the NRA rule." Tags: 457 Plans • Required Minimum Distributions (RMDs) • Retirement Plan Administration • Retirement Plan Design |
Brace Yourself for Higher RMDs in 2024
Morningstar Mar. 14, 2024 "Following a banner year in the stock market, investors subject to required minimum distributions could be in for a nasty tax surprise[.]" |
Text of IRS Publication 575: Pension and Annuity Income, for Use in Preparing 2023 Returns (PDF)
Internal Revenue Service [IRS] [Official Guidance] Mar. 12, 2024 52 pages, Mar. 7, 2024. "What's New: Distributions to victims of domestic abuse.... Reminders: [1] The direct payment requirement for certain distributions for payment of health or long-term care insurance repealed.... [2] Form 8915-F replaces Form 8915-E. " Tags: Misc. Distribution Issues • Required Minimum Distributions (RMDs) • Retirement Plan Administration |
Draft of IRS Publication 575: Pension and Annuity Income, for Use in Preparing 2023 Returns (PDF)
Internal Revenue Service [IRS] [Official Guidance] Feb. 16, 2024 53 pages. "What's New: Distributions to victims of domestic abuse.... Reminders: [1] The direct payment requirement for certain distributions for payment of health or long-term care insurance repealed.... [2] Form 8915-F replaces Form 8915-E. " Tags: Misc. Distribution Issues • Required Minimum Distributions (RMDs) • Retirement Plan Administration |
Planning for Inherited Retirement Accounts: Determining the Applicable Distribution Period
EisnerAmper [Guidance Overview] Jan. 19, 2024 "The new general rule of thumb is an inherited IRA has a ten-year withdrawal period and the account needs to be completely distributed by the end of the tenth year following the IRA account owner's death.... However, before we utilize the general rule of thumb, the following questions should be asked: [1] Did the decedent die before or after their required beginning date (RBD)? ... [2] What category is the beneficiary?" |
The IRA Whisperer
InsuranceNewsNet.com Jan. 10, 2024 "In this interview ... [Denise Appleby] discusses Roth versus traditional IRAs, errors to avoid, required minimum distributions and SECURE 2.0." Tags: IRAs • Required Minimum Distributions (RMDs) • SECURE 2.0 |
New Roth Provisions Effective in 2024
Slott Report [Guidance Overview] Jan. 4, 2024 "Congress included a provision in SECURE 2.0 that allows for rollovers of unused 529 funds to Roth IRAs. While this a worthy idea, beware of important restrictions on this new rollover rule.... SECURE 2.0 ... [exempts] Roth 401(k) funds from lifetime RMDs. Keep in mind that beneficiaries of inherited Roth 401(k)s are still subject to RMDs." Tags: IRAs • Required Minimum Distributions (RMDs) • Retirement Plan Administration • SECURE 2.0 |
Lawsuit Alleges Wells Fargo Advisor's Mistake Caused Costly RMD Shortfall
ThinkAdvisor Jan. 3, 2024 "A Wells Fargo advisor's error in entering an IRA trust beneficiary's birthdate caused a significant shortfall in required minimum distributions over several years, leaving the trust with over $130,000 in [IRS] penalties, according to a recent lawsuit[.]" [Lowe v. Wells Fargo & Co., No. 23-07380 (D. La. complaint filed Dec. 21, 2023)] Tags: Fiduciary Duties • Required Minimum Distributions (RMDs) |
IRS Employee Plans News: Required Minimum Distributions (PDF)
Internal Revenue Service [IRS] [Guidance Overview] Dec. 29, 2023 "Required Minimum Distributions (RMDs) are minimum amounts you must withdraw from your IRA or retirement plan account when you reach age 72. Beginning in 2023, the SECURE 2.0 Act changed the age RMDs must begin to age 73 for taxpayers that are born after 1950." [Also see IRS Employee Plans News: Required Minimum Distributions -- Beneficiaries] Tags: Required Minimum Distributions (RMDs) • Retirement Plan Administration • Retirement Plan Information for Employees |
SECURE 2.0: The Most Sweeping Legislation Impacting Retirement Plans in Decades
PASI [Guidance Overview] Dec. 28, 2023 This article provides both a high-level overview, as well as a detailed summary, of SECURE 2.0"s retirement plan provisions. Separate sections describe [1] Mandatory provisions, [2] Optional provisions, and [3] Legislative changes that do not require plan amendment. Tags: 401(k) Plans • Required Minimum Distributions (RMDs) • Retirement Plan Administration • Retirement Plan Design • SECURE 2.0 |
IRS Reminds Those Aged 73 and Older to Make Required Withdrawals from IRAs and Retirement Plans by December 31
Internal Revenue Service [IRS] [Guidance Overview] Dec. 20, 2023 "The [IRS] today reminded people born before 1951 of the year-end deadlines to take required minimum distributions (RMDs) from funds held in individual retirement arrangements (IRAs) and other retirement plans, and noted new requirements under the law beginning in 2023." |
SECURE 2.0 Corrections Drafted by Congress
PLANSPONSOR; free registration may be required Dec. 8, 2023 "[The proposed bill] corrects the most egregious error of SECURE 2.0: accidentally removing catch-up contributions, starting in 2024.... The corrections bill would also explicitly tie the maximum contribution amount for Starter 401(k) plans to the annual maximum for individual retirement accounts.... [T]he provision in SECURE 2.0 changing required mandatory distributions would also be corrected to reflect the intent of the drafters, which was to increase the age to 73 starting on January 1, 2023, and age 75 starting on January 1, 2033." Tags: 401(k) Plans • Required Minimum Distributions (RMDs) • Retirement Plan Design • SECURE 2.0 |
RMDs When Your IRA Investments Are Not Liquid
Slott Report Nov. 13, 2023 "If you have one IRA that is illiquid, you could simply take the RMD for that account from another IRA that is liquid.... You cannot satisfy your RMD for your IRA from a workplace plan or a Roth IRA. Another possibility is to make a tax year IRA contribution if you are eligible to inject some cash into an IRA.... [Y]ou would need to have earned income and you would be limited to the annual IRA contribution allowed. That may not be enough to satisfy the RMD." |
Plan Sponsor Year End Compliance: Consider SECURE 2.0 Provisions Effective January 1
Haynes and Boone, LLP [Guidance Overview] Sept. 27, 2023 "[1] Emergency savings accounts linked to individual account plans ... [2] No pre-death Roth required minimum distributions ... [3] Surviving spouse election to be treated as employee ... [4] Withdrawals for individual cases of domestic abuse ... [5] Withdrawals for certain emergency expenses ... [6] Updating dollar limit for mandatory small benefit distributions." Tags: 401(k) Plans • Required Minimum Distributions (RMDs) • Retirement Plan Administration • SECURE 2.0 |
SECURE 2.0: IRS Issues New Guidance on RMDs
Trucker Huss [Guidance Overview] Sept. 25, 2023 "[Notice 2023-54] provides ... [1] Relief for the change in the required beginning date (RBD) for RMDs under SECURE 2.0; [2] Guidance for certain RMDs for 2023; and [3] Extension of the applicability date of the final RMD regulations." |
IRS Issues 2023 RMD Relief Following SECURE 2.0 Act Changes (PDF)
Groom Law Group [Guidance Overview] Sept. 11, 2023 "[IRS Notice 2023-54 provides:] [1] the pending RMD regulations (for all plan types) will not be effective before the 2024 distribution calendar year; [2] relief for errors with respect to the [SECURE 2.0] 'required beginning date' change ... and [3] no 2023 RMD payments need to be made for beneficiaries receiving 'specified RMD' payments ('at least as rapidly' rule relief)." |
SECURE 2.0: Required Minimum Distributions (RMDs)
Watkins Ross [Guidance Overview] Sept. 7, 2023 "[Notice 2023-54] granted a transitional relief for RMDS for those participants born in 1951 and that have already received an RMD: The IRS is allowing the 60-day rollover rule for RMDs processed from January 1, 2023 to July 31, 2023 for participants born in 1951. Those affected participants (including a participant's surviving spouse) will have until September 30, 2023 to rollover their 'mischaracterized RMDs'. This also allows the participant to rollover the distributed funds back into the plan. Plans will not be penalized for failing to treat the distributions as eligible for rollover." |
IRA Beneficiary Payout Rules: The Madness Continues
Slott Report [Opinion] Aug. 30, 2023 "How in the world could a normal person, unaffiliated with retirement accounts as a hobby or profession, figure this stuff out? The answer is, they cannot.... In this real-life scenario, items under consideration included the definition of an [eligible designated beneficiary (EDB)], the ages of the deceased and the beneficiary, the ability for an EDB to choose a payout structure, the 'springing' nature of the 10-year rule when an EDB minor turns 21, the 'at least as rapidly' rule, and the application of IRS Notice 2023-54." |
SECURE 2.0 Provides 3-Year Statute of Limitations for Missed RMDs
Slott Report [Guidance Overview] Aug. 21, 2023 "RMD penalty waiver language contained in Section 313 of SECURE 2.0 ... adds a 3-year statute of limitations for missed RMDs. Meaning, if an RMD is missed, the 25% penalty is only applicable for the next three years.... But be forewarned! SECURE 2.0 is not perfectly clear. The legislation is not precise." |
RMD Relief? No Thank You!
Slott Report [Guidance Overview] Aug. 14, 2023 "[It] may seem that every beneficiary who is subject to the 10-year rule and would otherwise be required to take an RMD for 2023 should take advantage of the opportunity to skip their 2023 RMD. It may seem like a no brainer to keep the funds in the account if not needed and avoid an immediate tax bill. However, this may not actually be a smart planning move." |
Don't Need Your RMD? Use It to Build Generational Wealth
MSN News Aug. 9, 2023 "If you don't have to rely on your RMD to cover your cost of living and other routine expenses in retirement, there are a few strategies that could help you start using it to accumulate generational wealth that you can one day hand down to your heirs." Tags: Required Minimum Distributions (RMDs) • Retirement Plan Information for Employees |
Required Minimum Distribution Rules After SECURE 2.0 (PDF)
KLB Benefits Law Group [Guidance Overview] Aug. 3, 2023 "SECURE 2.0 adjusted the timing of the required beginning date, and it altered certain other RMD rules. This article describes many of these changes, and reviews some of the RMD basics[.]" |
IRS Provides Transitional Relief for RMDs and Inherited IRAs
Legacy Professionals LLP [Guidance Overview] Aug. 1, 2023 "[T]he IRS previously waived enforcement against taxpayers subject to the 10-year rule who missed 2021 and 2022 RMDs if the plan participant died in 2020 on or after the RBD. It also excused missed 2022 RMDs if the participant died in 2021 on or after the RBD. The latest guidance extends that relief by excusing 2023 missed RMDs if the participant died in 2020, 2021 or 2022 on or after the RBD." |
IRS Provides Guidance for Required Minimum Distributions
RSM US [Guidance Overview] July 26, 2023 "Notice 2023-54 ... announced that the Department of the Treasury and the IRS intend to issue final regulations related to RMDs under section 401(a)(9) which will apply no earlier than the 2024 distribution calendar year. The notice also provides guidance related to certain provisions of 401(a)(9) that apply for 2021, 2022 and 2023 as well as rollover relief for plan and IRA distributions made in the first half of 2023, that would have been RMDs, if not for changes made in SECURE 2.0." |
IRS Again Delays Final RMD Rule, Gives New Relief for SECURE Acts
Mercer [Guidance Overview] July 26, 2023 "[Notice 2023-54] is silent on whether plans need to inform affected participants about the extended rollover deadline for mischaracterized distributions. However, affected participants might not have any other way to find out about this opportunity." Tags: Required Minimum Distributions (RMDs) • SECURE 2.0 • SECURE Act |