IRA BDA RMD Question
Hello, I have a client that called me looking for some clarification regarding the CAREs Act and the Secure Act. She was particularly asking if the client waives their RMD for this year, will she still have to have the account depleted following the 5 year rule (original account holder died prior to 2019). The client understood that with the 5 year rule, the client will have to have the account depleted by 2022. With the RMD waiver will that be extended to 2023? Any information would be greatly appreciated.
Thank you.
Permalink Submitted by Alan - IRA critic on Fri, 2020-09-11 20:59
Apparently the account owner passed in 2017. The client would normally be taking beneficiary RMDs using their life expectancy, not the 5 year rule. DId client elect the 5 year rule by the end of 2018? If so, then the account must be drained by the end of 2023 instead of 2022. If a 2020 distribution was taken from the account it could have been returned by 8/31, but it is too late to return it now. But client would have an extra year before the account must be drained. Are you sure the client is under the 5 year rule?