What You Need to Know
- The IRS plan includes some unexpected rules for those 90 and older.
- The rules force some beneficiaries to watch two sets of RMD factors as they age into their 90s, he says.
The Internal Revenue Service’s recently released proposed regulations on how to handle required minimum distributions under the Setting Every Community Up for Retirement Enhancement (Secure) Act of 2019 include some unexpected rules for those 90 and older, says IRA and tax planning expert Ed Slott of Ed Slott & Co.
“There is an added RMD calculation based on monitoring two sets of different RMD rules that mainly affect 90-plus-year-old beneficiaries,” Slott told ThinkAdvisor in a recent email. “Why? To see how sharp their analytical skills are in their 90s?”
Last week, Slott highlighted other ways that the proposed regulations create an RMD nightmare in an interview with ThinkAdvisor.
Plus, “in what may be the craziest section” of the proposed regs, Slott continued, “there is a situation where an eligible designated beneficiary (EDB) can use the life expectancy of another individual to calculate RMDs, but at the same time would have to monitor his own life expectancy to determine when the inherited account would need to be emptied.”