Skip to content

Watch Our Educational Masterclasses!

Watch Now
  • Omaha Office
  • (402) 505-5400
  • Iowa Falls Office
  • (641) 648-2343
  • Minot Office
  • (701) 838-1998
Legacy Design Strategies
  • info@ldstrategies.com
Asset 1LegacyDesignStrategies-lt-hamburger Menu
  • Home
  • Estate Planning
    • Trust Administration & Probate
    • Business Planning
    • Nonprofit Entities & Charitable Planning
    • Farm & Ranch Planning
  • Medicaid Planning
    • Elder Law
  • Becoming a Client
    • Book a Call
  • Resources
    • Blog
    • Subscribe
    • Lifetime Legacy Program
    • For Professional Advisors
    • FAQ
    • Video Resources for Clients and Advisors
  • About Us
    • Our Attorneys
      • Andrew C. Sigerson
      • Jessica McCall
      • Ross M. Berg
      • Matthew R. Deaver
      • Matt Molettiere
      • Andria L. Mueller
      • Stacey L. Harding
      • Hilary N. Fisher
      • Amy Sonnenfeld
      • Gabriella Miller
      • Laura Wheeles
    • Our Team Members
      • Michael Carlson
      • Megan Dow
      • Melissa “MK” Epperson
      • Jennifer Allen
      • Julie Larsen
      • Danette Brothers
      • Mitzi Sundheim
      • Afton Basden
      • Derek Swain
      • Haley Rajca
      • Ashley Stuenzi
      • Dawn Plume
      • Catherine Kopti
      • Suzanne Scott
      • Savannah Glick
  • Contact Us
    • Omaha, NE Office
    • Minot, ND Office
      • DocuBank Log In
    • Iowa Falls, IA Office
Menu
  • Home
  • Estate Planning
    • Trust Administration & Probate
    • Business Planning
    • Nonprofit Entities & Charitable Planning
    • Farm & Ranch Planning
  • Medicaid Planning
    • Elder Law
  • Becoming a Client
    • Book a Call
  • Resources
    • Blog
    • Subscribe
    • Lifetime Legacy Program
    • For Professional Advisors
    • FAQ
    • Video Resources for Clients and Advisors
  • About Us
    • Our Attorneys
      • Andrew C. Sigerson
      • Jessica McCall
      • Ross M. Berg
      • Matthew R. Deaver
      • Matt Molettiere
      • Andria L. Mueller
      • Stacey L. Harding
      • Hilary N. Fisher
      • Amy Sonnenfeld
      • Gabriella Miller
      • Laura Wheeles
    • Our Team Members
      • Michael Carlson
      • Megan Dow
      • Melissa “MK” Epperson
      • Jennifer Allen
      • Julie Larsen
      • Danette Brothers
      • Mitzi Sundheim
      • Afton Basden
      • Derek Swain
      • Haley Rajca
      • Ashley Stuenzi
      • Dawn Plume
      • Catherine Kopti
      • Suzanne Scott
      • Savannah Glick
  • Contact Us
    • Omaha, NE Office
    • Minot, ND Office
      • DocuBank Log In
    • Iowa Falls, IA Office
What are the New IRA Distribution Rules?

What are the New IRA Distribution Rules?

  • Post category:Beneficiaries/Disabled/Estate Planning Attorney/Individual Retirement Account/Internal Revenue Service/IRA/IRS/Minor Children/Required Minimum Distribution/RMD/Roth/SECURE Act/Spousal/Surviving Spouse

Many of the proposed distribution rules, which will be subject to further action in late spring, depend upon whether or not the original IRA owner died before or after the applicable required beginning date for distributions. As explained in the article “The Internal Revenue Service (IRS) Issues Proposed Minimum Distribution Rules” from The National Law Review, the age changed as a result of the SECURE Act, to 72.

Spousal Beneficiaries. If the spouse of the deceased IRA owner is the sole designated beneficiary and elects not to rollover the distribution, the surviving spouse may take RMDs over the deceased’s life expectancy. However, if the owner died before their required beginning date and the spouse is the sole beneficiary, the spouse may opt to delay distributions until the end of the calendar year in which the owner would have turned 72.

If the decedent died after turning 72, the annual distributions are required for all subsequent years and the spouse may take distributions over the longer remaining life expectancy.

Minor Children Beneficiaries. If the beneficiary of the IRA is a minor child, under age 21, annual distributions are required using the minor child’s life expectancy. When the minor turns 21, they must take annual distributions and the account must be fully distributed ten years after the child’s 21st birthday.

Adult Children Beneficiaries. If the account owner dies after their required beginning date (age 72), an adult child who is a beneficiary must take annual distributions based on the beneficiary’s life expectancy. The account must be completely emptied within ten years of the original IRA owner’s death.

This applies only to adult children who are beneficiaries and are not disabled or chronically ill. Disabled or chronically ill adult children fall into a different category under the SECURE Act, with different distribution rules.

Special Rules for Roth IRAs. The benefits of Roth IRA accounts remain. There are no minimum distributions from a Roth IRA while the account owner is still living. After the death of the Roth IRA owner, the required minimum distribution rules apply to the Roth IRA, as if the Roth IRA owner died before their required beginning date.

If the sole beneficiary is the Roth IRA owner’s surviving spouse, the surviving spouse may delay distribution until the decedent would have attained their beginning distribution date.

If you own IRAs or other retirement accounts, speak with your estate planning attorney to determine if you need to update your estate plan. There are strategies to protect heirs from the significant tax liabilities these changes may create.

Reference: The National Law Review (March 25, 2022) “The Internal Revenue Service (IRS) Issues Proposed Minimum Distribution Rules”

Get All The Marketing Updates

Please Share!

Recent Posts

  • What Happens When Property Is Owned Jointly and an Owner Dies?
    What Happens When Property Is Owned Jointly and an Owner Dies?
    January 27, 2023/
    0 Comments
  • Some Expenses are Paid by Estate and Some by Beneficiary
    Some Expenses are Paid by Estate and Some by Beneficiary
    January 26, 2023/
    0 Comments
  • These Celebrities Didn’t have Wills…But You Should
    These Celebrities Didn’t have Wills…But You Should
    January 25, 2023/
    0 Comments

Categories

Lorem ipsum dolor sit amet consectetur ni adipiscing elit.
Legacy Design Strategies - An Estate and Business Planning Law Firm
  • Home
  • About Us
  • Contact Us
  • Privacy Policy
  • Disclaimer
  • Home
  • About Us
  • Contact Us
  • Privacy Policy
  • Disclaimer

Omaha

9859 South 168th Avenue
Omaha, NE 68136

Minot

7 Third Street SE, Suite 202
Minot, ND 58701

Iowa Falls

310 N Oak Street, PO Box 295
Iowa Falls, IA 50126

Information

  • (641) 648-2343
  • info@ldstrategies.com
Facebook Twitter Linkedin Rss

Contact Us

Copyright © IMS. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement. Some artwork provided under license agreement.

Office Locations

OMAHA, NE OFFICE

  • (402) 505-5400

IOWA FALLS, IA OFFICE

  • (402) 680-6997

MINOT, ND OFFICE

  • (701) 838-1998
Close
Legacy Design Strategies
  • Home
  • Estate Planning
    • Trust Administration & Probate
    • Business Planning
    • Nonprofit Entities & Charitable Planning
    • Farm & Ranch Planning
  • Medicaid Planning
    • Elder Law
  • Becoming a Client
    • Book a Call
  • Resources
    • Blog
    • Subscribe
    • Lifetime Legacy Program
    • For Professional Advisors
    • FAQ
    • Video Resources for Clients and Advisors
  • About Us
    • Our Attorneys
      • Andrew C. Sigerson
      • Jessica McCall
      • Ross M. Berg
      • Matthew R. Deaver
      • Matt Molettiere
      • Andria L. Mueller
      • Stacey L. Harding
      • Hilary N. Fisher
      • Amy Sonnenfeld
      • Gabriella Miller
      • Laura Wheeles
    • Our Team Members
      • Michael Carlson
      • Megan Dow
      • Melissa “MK” Epperson
      • Jennifer Allen
      • Julie Larsen
      • Danette Brothers
      • Mitzi Sundheim
      • Afton Basden
      • Derek Swain
      • Haley Rajca
      • Ashley Stuenzi
      • Dawn Plume
      • Catherine Kopti
      • Suzanne Scott
      • Savannah Glick
  • Contact Us
    • Omaha, NE Office
    • Minot, ND Office
      • DocuBank Log In
    • Iowa Falls, IA Office

Scroll Down for Office Locations