Effective Strategies for Avoiding RMD Mistakes and Penalties for IRA Owners FLEXCAST

Overview

Updated for the NEW proposed RMD Regulations which explains the SECURE Act. Required minimum distributions (RMD) must begin for the year in which the account owner reaches age 72, unless an exception applies. RMDs must also be taken from inherited accounts, and the process for determining RMDs for these accounts is more complex than those that apply to RMDs for non-inherited accounts. Failure to comply with the RMD rules will result in the account owner owing the IRS a 50% excess accumulation penalty on any RMD shortfall. Interested parties must understand the compliance requirements that apply to RMDs to be able to assist in ensuring that penalties are avoided.

Highlights

What is a required minimum distribution for an account owner? What is a required minimum distribution for a beneficiary IRA? Key changes and explanations provided under the IRS proposed RMD regulations. The various responsibilities for interested parties. Qualified charitable distributions and how they are coordinated with RMDs and IRA contributions. NEW How the IRS’s interpretation drastically changes the way the 10-year rule works for certain beneficiaries.

Prerequisites

None.

Designed For

CPAs and other tax professionals.

Objectives

Define an RMD so that clients know the minimum amounts to distribute. Calculate RMDs and make adjustments when IRA custodians fail to. Identify the individuals and accounts that are subject to the RMD rules. Identify the RMD mistakes that can occur, how to avoid such mistakes, and how to correct them where possible. How to get automatic waivers for the 50% excess accumulation penalty.

Preparation

None.

Notice

This is a FlexCast (no exam required) and may be viewed only Monday - Saturday, 5am - 5pm PT. You may take up to one year from the date of purchase to complete the course. Pause your FlexCast and resume at a convenient day during the hours above. Partial credit for 2+ credit courses: If you are unable to complete the course in one sitting, partial credit can be awarded (minimum of one credit). To earn the remaining credits, you must return later and start the course from the beginning. Use chat to ask questions of a subject matter expert during the program.