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The following questions provide a quick way to gauge your knowledge of the
new rules concerning required distributions from IRA's, qualified retirement plans and
TSA's. Everyone with assets in a retirement plan, regardless of his or her age, or
the beneficiary of such plans needs to have a reasonable understanding of minimum required
distributions. In certain circumstances, that understanding can be more valuable than the
selection of a prudent investment.
- Explain the
difference between a Designated Beneficiary and a recipient
named on a beneficiary designation form? [§1.401(a)(9)-4, A-1]
- Describe the options available to a non-spouse beneficiary
of an IRA who wishes to avoid an immediate payout of the decedent’s account and the
subsequent tax liability. [§1.401(a)(9)-3,
A-1 & §1.401(a)(9)-5, A-5]
- What is the deadline that must be met so
that a charity named as beneficiary for a portion of an account will not compromise the
stretch-out opportunities of the other beneficiaries?
[§1.401(a)(9)-4, A-4]
- List the four requisites a revocable trust
must fulfill in order for it to serve as a suitable beneficiary of an IRA, TSA or
qualified retirement plan? What is the deadline
for satisfying each of those requirements? [§1.401(a)(9)-4, A-5(b)]
- How do you
determine the applicable distribution period for required distributions following a participant’s post-RBD death if
the account has no Designated Beneficiary?
- If a QTIP trust is used as a beneficiary
for a qualified plan, what resource document spells out the guidelines that such a trust
must follow in order to qualify for the marital deduction and also satisfy the minimum
distribution rules?
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