The problem arose from the passage of the SECURE 2.0 Act late last year, which didn’t give financial institutions time to update their systems.
Here’s why you need to read beyond the headlines and understand why this may be the most overhyped provision of SECURE 2.0.
In addition to raising the age at which individuals must start taking required minimum distributions, the SECURE 2.0 Act also lowers the penalty for not taking an RMD.
The provisions of the SECURE and CARES Acts, and the related IRS rules, are creating even more confusion about which beneficiaries are subject to RMDs this year.
A qualified charitable distribution is a direct transfer of traditional IRA funds to a qualified charity.
This list is longer than you might have thought, and it’s more confusing than ever before. And the penalty is still 50% if the RMD isn’t taken.
The tax collector says there will be no 50% penalty for missed 2021 and 2022 RMDs for beneficiaries subject to the 10-year rule.
Clients don't have to sell stocks in their individual retirement accounts to take their required minimum distributions.
New IRS rules complicate the calculation of required minimum distributions for those who have inherited individual retirement accounts.
Many clients aren't aware that plans they made long ago to leave individual retirement accounts to their beneficiaries may not work as intended, given the SECURE Act and recent IRS rules.
