Giant Leap for IRA Simplification

New proposed regulations issued by the Treasury Department offer to do away with the complicated task of calculating IRA distributions. No longer will taxpayers have to rely on complicated life expectancy tables, nor will beneficiaries have to be locked in forever.

The required distributions will henceforth be determined from a single tax table which produces the smallest required minimum distribution allowed under the old rules. With this simple change, the IRA account holder will be able to easily determine the required annual distribution, and the IRS will know what to expect as a minimum amount of taxable income from account holders who are receiving distributions.

The previous rule for calculating distributions that includes a reduction based on the age of a beneficiary's spouse who is more than 10 years younger will still apply.

Distributions after the death of an IRA account owner may now be spread over what remains of the owner's actuarial life expectancy.

Financial institutions and trustees maintaining IRA accounts will now be required to report minimum required distributions of all accounts to the IRS.

Taxpayers may begin applying the proposed regulations immediately.

You may like these other stories...

Boehner addresses GOP priorities ahead of midterm electionsHouse Speaker John Boehner (R-OH) on Thursday delivered what amounted to closing arguments ahead of the November elections, laying out a list of Republican...
As anyone who's ever been through a divorce can attest, the pain of parting with your spouse isn't just emotional—the fallout from divorce can wreak financial havoc as well long after the dust in the courtroom...
Former DOJ Tax Division head Kathryn Keneally joining DLA Piper in New YorkGlobal law firm DLA Piper announced on Thursday that Kathryn Keneally, the former head of the US Justice Department Tax Division, is joining the firm...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.