SECURE Act/EDB
In Ed’s 2/2020 IRA Advisor, N. Choate said that, for an EDB, pre-SECURE Act the rules largely remain in place. Post SECURE Act, for an EDB, are life expectancy distributions required or merely optional?
In Ed’s 2/2020 IRA Advisor, N. Choate said that, for an EDB, pre-SECURE Act the rules largely remain in place. Post SECURE Act, for an EDB, are life expectancy distributions required or merely optional?
Permalink Submitted by Alan - IRA critic on Tue, 2020-03-03 16:55
The only other option for an EDB would be the 5 year rule election if IRA owner passed prior to the RBD. I don’t see anything in Secure that eliminates the EDB from the 5 year rule election if they perceived some advantage. A closely related question is whether an older EDB can still use the remaining LE of the decedent if that will produce a longer stretch. Probably can subject to new IRS Regs. However, an EDB probably will not be able to decline EDB status to become just a DB in order to access the 10 year rule. The general question is whether an EDB could be worse off than pre Secure, and I doubt it although the IRS will have to clean up these questions with new Regs. That job will not be simple and could take some time. In the meantime, penalty waivers will obviously continue to be liberally granted as before should a new Reg result in some limitation.