Note: The final regulations were published on 4/17/2002 and replace the proposed regs. Click here for the 2002 final regs. Click here for information on pension distributions software.
In 2001, the IRS issued new proposed regulations that
simplified the required minimum
distributions rules. The new rules were mandated for distributions on
or after 1/1/2002 and were optional for distributions in 2001 or the prior existing
rules may continue to be used in 2001. The proposed regulations are
available at this site: Click here to view REG-130477-00
and REG-130481-00 or Click
here to download the 225K IRS file: 13048100.pdf. The
IRS also issued a number of wording corrections to
the proposed regulations on 2/20/01. IRS
Announcement 2001-23 (3/5/01) has the IRS' most readable explanation of
the new rules. The new rules will generally
benefit taxpayers since they provide for the same or lower required distributions in most
cases. The rules for distributions during the life of the plan owner have
been greatly simplified. The rules for distributions after the death of
the owner remain convoluted.
See Brentmark's article Required Minimum Distributions: Calculations under the New Rules for a description of the 2001 proposed rules from a calculation perspective. See Brentmark's article Required Minimum Distributions: Calculations under the Final Regulations for a description of the 2002 final rules from a calculation perspective.
Also see Brentmark's NewRMD.Com Web Site for the latest information on the required minimum distributions rules.
3505 Lake Lynda Drive, Suite 119
Orlando, FL 32817-8333
1-800-879-6665 or 407-306-6160