The new, final minimum distribution rules: some problems linger

The final minimum distribution rules for tax-favored retirement plans, published a little more than two years ago, provided some relief from the complex and inflexible original regulations. However, simplification does not necessarily mean simple, and the new rules leave in place an extremely compli...

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Bibliographic Details
Published in:Benefits law journal 2004-09, Vol.17 (3), p.46
Main Author: Hancock, Barbara S
Format: Article
Language:English
Subjects:
Beneficiaries
Charities
Distribution of retirement plan assets
Estate planning
Individual retirement accounts
Life expectancy
Life insurance
Retirement income
Retirement plans
Taxation
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Summary:The final minimum distribution rules for tax-favored retirement plans, published a little more than two years ago, provided some relief from the complex and inflexible original regulations. However, simplification does not necessarily mean simple, and the new rules leave in place an extremely complicated system that does an imperfect job of expressing the policy it is supposed to carry out. A person that is not an individual, such as the employee's estate, may not be a designated beneficiary. If a person other than an individual is designated as a beneficiary of an employee's benefit, the employee will be treated as having no designated beneficiary. To be a designated beneficiary, an individual must be: 1. be designated by the employee (or IRA owner) on the beneficiary designation form for the retirement account, or 2. designated under the terms of the plan, or 3. a beneficiary of a qualifying trust named as beneficiary.
ISSN:0897-7992