Required Minimum Distributions Rules and Planning Options

Required minimum distributions (RMDs) can create avoidable penalties, surprise taxable income and missed planning opportunities when clients do not understand when distributions start. In this session, we’ll cover the core RMD rules tax professionals need for accurate compliance and practical planning. We’ll focus on determining when a client must begin taking distributions, identifying the correct account owner and beneficiary rules, and calculating and reporting RMDs on the individual return. We’ll also discuss planning options that can reduce or smooth taxable income, coordinate distributions with withholding and estimated tax needs, and support client goals such as charitable giving and Roth planning. Common problem areas such as inherited accounts, multiple retirement accounts and missed RMDs will be addressed. 

Objectives

Upon completion of this session, you will be able to:

• Determine when RMDs begin for a client based on the applicable rules 
• Identify which retirement accounts are subject to RMDs 
• Apply planning options that manage taxable income from RMDs across multiple years 
• Evaluate charitable giving strategies that coordinate with RMDs, including qualified charitable distributions 
• Explain corrective steps for missed RMDs, including when Form 5329, Additional Taxes on Qualified Plans Including IRAs and Other Tax Favored Accounts, may apply 

CPE