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.

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

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

Designed For

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

Prerequisites

A basic understanding of retirement plan distributions and taxation of distributions

Preparation

None

Notice

By registering for this program and, accordingly, receiving the eMaterials, you’re acknowledging that you understand both the copyright restrictions on your eMaterials and the CTCPA cancellation policy. https://www.ctcpas.org/events/cpe-policies

Fees

Credits

Level

Code

Vendor

Fields of Study

Leader(s):

John Kilroy, Surgent McCoy CPE, LLC

Leader Bios

John Kilroy, Surgent McCoy CPE, LLC

John Kilroy is a managing member of iValue Financial Planning LLC, located in the Philadelphia, Pennsylvania area. John engages clients in financial and tax planning, as well as preparing tax returns for individuals, corporations, partnerships, estates, and trusts. John is a CPA and a CFP® practitioner. He is a 1979 graduate of Villanova University with a BS in Accounting. John is a member of the Pennsylvania Institute of Certified Public Accountants and the Financial Planning Association (FPA). Within the FPA, John has served as a board member of the Philadelphia Tri-State chapter and on its education and finance committees. John is an adjunct faculty member for the Temple University Certificate of Financial Planning Program. He is a frequent speaker and facilitator on tax and financial planning topics. John has been quoted in the Wall Street Journal, MarketWatch.com, and USATODAY.com. He has written for the Journal of Financial Planning, and is a contributor to Retirement Weekly. John has also discussed financial and tax planning issues on various radio outlets.

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