Top 20 Effective Strategies for Avoiding RMD Mistakes and Penalties

Program Name: Appleby’s Top 20 Effective Strategies for Avoiding RMD Mistakes and Penalties  

Overview

Required minimum distribution (RMD) must begin for the year in which the account owner reaches age 70½, unless an exception applies. Failure to comply with the RMD rules will result in the account owner owing the IRS a 50% excess accumulation penalty on any RMD shortfall. RMDs must also be taken from inherited accounts, and the process for determining RMDs for these accounts are more complex than those that apply to RMDs for non-inherited accounts. Interested parties must understand the compliance requirements that apply to RMDs, to be able to assist in ensuring that penalties are avoided.

Major Topics

• The definition of a required minimum distribution
• The types of accounts that are subject to the required minimum distribution rules
• The parties that are are subject to the required minimum distribution rules
• The process for calculating required minimum distribution
• Exceptions and special considerations for required minimum distributions
• Rollover and transfer rules in an RMD year
• The various responsibilities for interested parties
• Qualified charitable distributions

Learning objectives

• To understand how to define an RMD.
• To understand how RMDs are calculated.
• To understand how to identify the individuals and accounts that are subject to the RMD rules.
• To learn about the mistakes that can occur, how to avoid such mistakes, and how to correct them where possible.