Mark Munson and Kayla Murphy, of Ruder Ware LLP, have made available for download their article, “IRS Releases Publication on RMDs for Inherited Retirement Benefits (and, of course, creates confusion),” published in JDSUPRA. The abstract is as follows:
Much to the dismay of the estate planning community, the Internal Revenue Service (IRS) recently released an updated version of IRS Publication 590-B, which discusses the distribution requirements for retirement benefits inherited by “designated beneficiaries.” According to the updated version of IRS Publication 590-B, a “designated beneficiary” is required to withdraw a minimum amount from the inherited retirement benefit during each year of the 10-year period. The amount of the “required minimum distribution” (or “RMD”) that must be withdrawn every year by the “designated beneficiary” is determined under the same rules in effect before passage of the SECURE Act. At the end of year 10, the “designated beneficiary” is still required to withdraw all remaining funds in the retirement plan.
To see the full article, click here: “IRS Releases Publication on RMDs for Inherited Retirement Benefits (and, of course, creates confusion)”
Posted by Elise Kim, Managing Associate Editor, Wealth Strategies Journal.