Posts tagged Beneficiary
Top IRA Questions from Ascend

Every year industry professionals gather with Ascensus trainers at the Ascend conference. Not only do they get to continue their education and refine their expertise in retirement, health, and education savings plans, but they get to submit questions to our highly-qualified trainers. Here are the top questions asked and answered over the week.

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New RMD Rule Could Affect Spouse Beneficiaries, Hypothetically

The new RMD regulations are not without at least one limitation for spouse beneficiaries, in the form of the “hypothetical RMD.” This could affect a spouse beneficiary who inherits an IRA or qualified retirement plan account before the deceased’s RMDs are required to begin—generally age 73—and who elects the new 10-year beneficiary payout rule in order to delay the onset of required distributions.

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Understanding the 10-Year Rule

Beginning with account owner deaths in 2020 and later, the SECURE Act of 2019 made significant changes to the rules on how qualified plan beneficiaries distribute their inherited assets. One significant provision prevents most nonspouse beneficiaries from “stretching” out distributions and taxation over their life expectancy.

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Naming a Trust as IRA Beneficiary

Naming a trust your IRA beneficiary is much less common than naming one or more persons, but it is not altogether rare.  Unlike a will—which essentially only identifies who will receive a decedent’s assets—a trust can set conditions or limitations for receiving the assets and identifies one or more trustees to ensure that the decedent’s wishes expressed in the trust are carried out.

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IRS Provides Additional RMD Transition Relief Under SECURE/SECURE 2.0

The IRS on July 14, 2023, issued Notice 2023-54 to provide transition relief for required minimum distributions (RMDs) in connection with the change in required beginning date (RBD) to age 73 under SECURE 2.0, and guidance for certain specified RMDs for 2023.

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