HELP A recent WSJ article outlined new simplifiedregulations pertaining to the distribution of IRA assets. They apply both to the owner of the IRAand his beneficiary(s) IRA publication 590 for 2000does not address these changes. Where can we obtaina printout of these helpful new changes? Thanksanthony
Anthony writes:A recent WSJ article outlined new simplifiedregulations pertaining to the distribution of IRA assets. They apply both to the owner of the IRAand his beneficiary(s) IRA publication 590 for 2000does not address these changes. Where can we obtaina printout of these helpful new changes?You can read the new regs at http://ftp.fedworld.gov/pub/irs-regs/13048100.pdf; however, they may be quite confusing to you. IRS Publication 590 probably won't be rewritten to incorporate the changes for a number of months, either.I'll have a Special column on the proposed regs next week that might help. All in all, the change simply says those 70 1/2 or older don't have to worry about who they select as a beneficiary. Additionally, they must use the MDIB table found in Appendix E of the current IRS Pub 590 to find their life expectancy factor each year. That number then gets divided into the balance as of 12/31 of the prior year to determine the required minimum distribution. That procedure gives the smallest required distribution of all eight methods.BTW, if you have a spouse that's more than ten years younger than you, then you don't have to use the MDIB table. Instead, you can use the joint life table which makes the required distribution even smaller.If you don't like that method, then you can use the old rules found in Pub 590. And those who have already started required distributions can use the one they have now or switch to the new method.Regards..Pixy
One of the current best sites for information about the new regs is Ed Slott's site:www.irahelp.com and take a look at his message board called a forum. There are alot of questions concerning the new regs with answers. Couple other sites that are of value are;www.ataxplan.com, this is Natalie Choate's site.www.benefitslink.comwww.rothira.comwww.fairmark.comBarry Picker's site, not sure of the URLI have been following these sites since it was first posted on Ed Slott's site on the 15th.. I am a leader for a Retirement Planning Study Group and so I am trying to stay on top of this topic. I am sure it will take a few months before things become clear, but it does seem that required minimum distributions have been simplified.