Required mandatory distribution (“RMD”) calculations for beneficiary IRAs are now available in your clients’ Filing Cabinets. While custodians have historically calculated RMDs for all applicable retirement accounts, the vast majority of custodians are no longer providing calculations for beneficiary IRAs. This is due to the SECURE Act of 2019, which introduced several changes to RMD calculations that make it more complicated, resulting in additional risk for custodians if they provide this service.
We know how important RMDs are for your clients and continue to find ways to make it easier for you to do business. As a result, EQIS has calculated RMDs.
There is one scenario where an RMD calculation is unavailable, which is when the beneficiary IRA account falls under the SECURE Act’s 10-year rule, which requires the entire account value be distributed by the end of the 10-year period. How much to withdraw from the account each year is a decision each client will have to make based on their unique tax situation.
Below is a diagram that illustrates the RMD options available based on how the SECURE Act classifies a beneficiary. It is important to note that we are unable to provide specific tax advice and encourage your client to discuss these options with a tax professional.
If you have questions about accessing your clients’ RMD calculations, please contact Advisor Services at support@EQIS.com or 800-949-9936 and then press 2.
Intended for information purposes only, not for client distribution. EQIS does not provide tax or legal advice.
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