Q: I inherited an IRA in 2022 upon the passing of my father after he had already started his RMDs. I took a 2023 RMD from it in May 2023. Your website says I'm not required to take this RMD. I called the custodian to reverse it, but they said it can't be done. Is this true?
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Q: I believe we are all waiting for the IRS to issue rules related to distribution requirements (or not) for beneficiaries who are subject to the 10-year rule under the SECURE Act. Where is the clarification for 2023? In my situation, my children are beneficiaries who inherited an IRA from Grandma, who passed away in 2022. She had started her required minimum distributions (RMDs). So, I know the accounts need to be emptied within 10 years, but there is no clarification on required RMDs in years 1-9 of the 10-year payout period.
When will the IRS update us with 2023 rules and/or another waiver?
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Q: I have a client who, during 2022, was separated from employment, turned 55, and took a distribution from his former employer's 401(k) account. We properly used the Rule of 55 exception to avoid the 10% early withdrawal penalty. During 2023 (without consulting me), he rolled the remaining balance of that former employer's 401(k) account into an IRA, and THEN took a distribution from that IRA account. Does the 10% penalty apply to this distribution?
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Q: I have a question regarding solo 401(k)s. Does a solo 401(k) contribution affect the pro-rata rule when considering a backdoor Roth IRA?
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