Surgent's Required Minimum Distributions: Compliance and Planning

Overview

Required minimum distributions (RMDs) from employer retirement plans and IRAs must be made or steep penalties will be incurred. Planning opportunities exist in certain situations to minimize distributions. Also, special rules exist for inherited retirement funds. Your clients depend on you to help them navigate the rules regarding required minimum distributions and the taxation of distributions. This course addresses compliance issues and planning opportunities regarding required minimum distributions.

Highlights

• Minimum distribution requirement changes by the SECURE Act 2.0
• Latest guidance issued by the IRS related to required minimum distributions
• The calculation of required minimum distributions using the Uniform Life Table
• Required minimum distributions from multiple accounts
• New §401(k) rules of SECURE Act 2.0
• Inherited employer retirement accounts and IRAs: Changes to spousal and non-spousal beneficiary distribution options and stretch IRAs under the SECURE Act
• Required minimum distributions in the year of death
• Roth conversions for estate planning and avoiding required minimum distributions
• Timing of distributions for maximum tax-free compounding
• Section 529 rollovers to Roth accounts under SECURE Act 2.0
• Qualified charitable distributions from IRAs and the relationship between deductible IRAs and QCDs under the new anti-abuse rules. Includes SECURE Act 2.0 rollovers to CRUTs and CRATs
• Taxation of distributions
• Penalties for missed required minimum distributions and reasonable cause for abatement of penalties. Includes SECURE Act 2.0 changes

Prerequisites

A basic understanding of retirement plan distributions and taxation of distributions

Designed For

Any tax practitioner that desires to improve customer service related to required minimum distribution compliance and planning

Objectives

• Understand the calculation of required minimum distributions
• Understand when required minimum distributions are required
• Understand how to treat inherited retirement accounts and how to utilize stretch IRAs
• Understand the importance of designated beneficiaries of retirement accounts
• Discuss the process of requesting the abatement of penalties for failure to make required minimum distributions and how to correct a failure to make a required distribution
• Understand how to handle an incorrect Form 1099-R
• Discuss how distributions are taxed when the retirement account has basis that can be returned free of tax
• Understand the changes to RMD, penalty, and rollover rules under SECURE Act 2.0

Preparation

None