Among the most complicated and frustrating IRA rules are required minimum distributions (RMDs). RMDs are required on all traditional IRAs in and after the year the owner turns 70 1/2 years old. For inherited IRAs, RMDs are also obligatory starting in the year after the previous owner’s death.

A new RMD value must be calculated every year.

Although many companies will determine traditional IRA RMDs for you, the RMD of inherited IRAs is significantly more complex. The inherited IRA calculation is so onerous that account owners or their advisors must compute it manually.

Although the client is ultimately responsible, we provide assistance in calculating and implementing our client’s RMDs, both traditional and inherited, each year as a part of our “Comprehensive” service. We also provide the administrative support necessary to oversee the entire distribution process.

The Full Complexity of All Required Minimum Distribution Divisors Explained

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Most divisors are looked up in tables based on your age. Others are calculated based on last year’s divisor. Some particularly unfortunate cases have distribution deadlines rather than divisors at all.

Estate Settlement: Satisfying the Year of Death RMD

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The required IRA distribution in the year the account owner dies is called a Year of Death RMD.

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