How has the calculation of the minimum required distribution amount changed?
The Proposed Treasury Regulations significantly simplified the “account-based” method of calculating the minimum required distribution amount. Among other things, the regulations provide the use of a single life expectancy table based solely on the life of the participant for most situations when the participant reaches his or her required beginning date. The only exception is when the sole primary beneficiary is a spouse who is more than ten years younger than the participant. In this situation the Joint Life and Last Survivor Expectancy table may be used. The individuals who are required to take minimum distributions will most likely be able to take smaller amounts from their account each year, allowing more of their assets the potential to grow. The RMD amount and tax savings, if any, will depend on the age and value of the participant’s retirement account. A participant does not have to choose whether to recalculate or not to recalculate. The factor to use in dividing the account v
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- How has the calculation of the minimum required distribution amount changed?
