'Gotcha' Is Gone: Understanding the New, Simplified Minimum Distribution Rules, Part I

Choate, Natalie B.
March 2001
Journal of Financial Planning;Mar2001, Vol. 14 Issue 3, p84
Academic Journal
This article focuses on the principal changes proposed by the U.S. Internal Revenue Service (IRS) for the minimum distribution rules for individual retirement accounts and retirement plans. The three main changes the IRS proposed for minimum distribution rules are: A simplified method for calculating required lifetime distributions at and after the required beginning date; For post-death required distributions, the "applicable distribution period" will be the life expectancy of the designated beneficiary who actually inherits the benefits when the participant dies; The debate about which is the best method of determining life expectancy disappears. Under the new rules, all participants and spouses automatically receive the benefit of recalculation without the drawbacks.


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