REQUIRED MINIMUM DISTRIBUTIONS

Required minimum distributions. The IRS recently issued regulations regarding required minimum distributions under the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE ACT), which made several changes to retirement regulations and the proposed regulations are updates to reflect the amendments. The SECURE Act eliminated the "stretch IRS" for just about everyone who inherit in 2020 or later and replaced it with a 10 year payout provision for most non-spouse beneficiaries. There is no requirement that any amount be taken in any particular year, so long as all funds are withdrawn from the account by the end of the 10th year. These are the same rules as under the 5 year distribution rules except a non-eligible designated beneficiary gets 10 years rather than 5 years to take the funds out. The SECURE Act carves out exceptions by creating a new class of designated beneficiaries now called eligible designated beneficiaries or EDBs. Required minimum distributions.

Eligible designated beneficiaries are spouses, people with disabilities, chronically ill individuals, minor children up to the age of majority, but not including grandchildren. Although the 10 rule year applies when the child does reach the age of majority for age 26 if still in school. And individuals who are not more than 10 years younger than the IRS owner. Any designated beneficiary who inherited before 2020. These beneficiaries are grandfathered under the pre-2020 stretch IRS rules. For additional information you can obtain what you need by visiting the IRS website located at IRS.GOV.

If you messed up and didn't follow the required minimum distribution rules, or like hundreds of thousand during the Covid Pandemic, took out large amounts of taxable income during the crisis to tide you through, and now have a sizeable tax debt, our Tax Resolution firm can help you determine every option in the IRS code for Tax Relief, including the IRS Fresh Start Program. Don't limit yourself to those options only, as other options exist outside that program. You will want one of our exceptional and seasoned Tax Fellows to handle your case for a best result.