rmd post secure act 1.0
I was recently told by a client that her CPA told her that if she had been taking RMDs pre secure act 1.0, she would have to follow the original RMD table (that started at 70.5) and therefore the new table DOES NOT apply to her. However, several custodian companies are using the new post secure act table to calculate her RMD. Who is right ? Thanks.
Permalink Submitted by Alan - IRA critic on Fri, 2023-03-17 16:53
The CPA is incorrect. Starting with 2022 RMDs the new tables apply, and for non spouse beneficiaries the divisors must be reset to reflect what the starting divisor would have been had the new tables been effective in their first RMD year, and from that divisor 1.0 is subtracted for each year after that first year. Acting on the CPA’s incorrect advice would result in client taking out more than her RMD. If this has happened in the last 60 days, she might consider rolling back the excess, although that would use up her one permitted rollover for the next 12 months.
Permalink Submitted by John Worrel on Fri, 2023-03-17 17:29
Thanks for your response- this is what I was thinking and had been utilyzing when applicable.