Programming Software for Secure Act RMD Rules for Bene IRAs

Submitted by Jeanette LoPiccolo on Thu, 2021-10-14 18:36

Hi,
I am helping to program our custom net worth software to calculate the RMD deadlines for Bene IRA & Roth accounts under The Secure Act RMD Rules. For example, if the deceased died in year 2020 and the 10 year rule applies, our RMD calculation would show 12/31/2030 as the “deadline”. If the deceased died in year 2021 and the 10 year rule applies, our RMD calculation would show 12/31/2031as the “deadline”.

My question is about entity beneficiaries subject to the 5 year rule.

If the deceased died in year 2020 and the 5 year rule applies, should my RMD calculation show 12/31/2025 or 12/31/2026 as the “deadline”?

If the deceased died in year 2021 and the 5 year rule applies, should my RMD calculation show 12/31/2026 or 12/31/2027 as the “deadline”?

Thanks in advance!
J



Submitted by Alan - IRA critic on Thu, 2021-10-14 19:51

12/31/2025 and 12/31/2026 respectively. However, in both cases there are actually 6 calendar years available to spread distributions counting the year of death. Taxable income space in the year of death will depend on whether the beneficiary must also complete the decedent’s uncompleted RMD for that year. Of course, year of death RMDs do not apply for 2020 deaths.

Submitted by Aleks Shamles on Mon, 2022-04-11 14:09

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