Minimum Distribution From Tax-Favored Retirement Plans

• § 8.01 Overview of Required Minimum Distributions
• —–[1] Required Beginning Date for Minimum Distributions (RBD)
• —–[2] Minimum Distribution Requirements for Annuities
• —–[3] Minimum Distribution Requirements for Non-Annuities
• —–[4] Distributions Not Taken into Account
• —–[5] Distribution Under a QDRO
• —–[6] IRA Ownership Election by Surviving Spouse
• —–[7] Aggregation of Plans, IRAs, or Roth IRAs
• —–[8] Division of Plans, IRAs, or Roth IRAs
• —–[9] Source of Funds for Distributions
• —-[10] Suspension of Minimum Distribution for 2009

• § 8.02 Required Beginning Date for Minimum Distributions (RBD)

• § 8.03 Minimum Distribution Requirements for Annuities
• —–[1] Minimum Distribution Requirements for Annuities in General
• ———-[a] Satisfying Minimum Distribution Requirements
• ———-[b] Satisfying Initial Minimum Distribution Requirement for Annuities
• ———-[c] Annuity Beginning Too Late to Satisfy Initial Minimum Distribution Requirements
• ———-[d] Annuity Starting before Required Beginning Date (RBD)
• —–[2] Requirements Applicable to Fixed Term Annuities
• ———-[a] Satisfying Requirements Applicable to Fixed Term Annuities
• ———-[b] If Spouse Is Sole Beneficiary
• ———-[c] Payments Starting Before the Required Beginning Date (RBD)
• ———-[d] Retiree Dies before the Required Beginning Date (RBD)
• —–[3] Requirements Applicable to Lifetime Annuities
• ———-[a] When Requirements Applicable to Lifetime Annuities Automatically Satisfied
• ———-[b] Payments to Younger Nonspouse Beneficiary
• ———-[c] Minor or Disabled Child
• ———-[d] Payments Guaranteed for Fixed Term Under a Lifetime Annuity
• —–[4] Annuity Payments that Increase Over Time
• ———-[a] Increases Allowed by Tax Law
• ———-[b] Additional Exceptions for Purchased Annuities
• ———-[c] Additional Exceptions for Certain Annuities Paid by a Defined Benefit Plan
• —–[5] Changing the Annuity Payment Period
• —–[6] Insurance Company Annuity Purchased by Plan or IRA
• —–[7] Additional Rules for Annuities Under Defined Benefit Plans
• ———-[a] Accrual of Additional Benefits
• ———-[b] Retirement After Age 70 ½
• ———-[c] Lump Sum Distribution in Lieu of Annuity

• § 8.04 Minimum Distribution Requirements for Non-Annuities
• —–[1] Required Non-Annuity Distributions to the Retiree
• ———-[a] When Required Non-Annuity Distributions Must Be Made
• ———-[b] Distributions to Retiree Based on Adjusted Account Balance
• —————[i] Determination of Adjusted Account Balance
• —————[ii] Adjusted Account Balance for a Qualified Retirement Plan
• —————[iii] Adjustment of Account Balance for Certain Subsequent Year Events
• ———-[c] Computation of Retiree’s Required Minimum Distribution
• —————[i] Formula to Compute Retiree’s Required Minimum Distribution
• —————[ii] Liberal Non-Annuity Distribution Rule for Married Retiree
• —————[iii] Treatment of Unvested Benefits
• —–[2] Required Non-Annuity Distributions to Beneficiaries
• ———-[a] Requirements Depend on Identity of Designated Beneficiaries
• —————[i] Identifying Designated Beneficiaries
• —————[ii] The Oldest Designated Beneficiary
• —————[iii] Beneficiaries that Are Not Individuals
• ———-[b] Death of the Retiree on or after the Required Beginning Date (RBD)
• —————[i] Payment of Retiree’s Unpaid Distribution After Death of Retiree
• —————[ii] No Designated Beneficiary
• —————[iii] Spouse as Sole Designated Beneficiary
• —————[iv] Other Designated Beneficiaries
• ———-[c] Death of the Retiree Before the Required Beginning Date (RBD)
• —————[i] Methods for Satisfying Minimum Distribution Requirements
• —————[ii] The Five-Year Rule
• —————[iii] The Life Expectancy Rule
• ——————–[A] When the Life Expectancy Rule Applies
• ——————–[B] Spouse as Sole Designated Beneficiary
• ——————–[C] Other Designated Beneficiaries
• —————[iv] Spouse Dies before Minimum Distributions Required
• —————[v] Choice of Distribution Rule by Spouse Who is Sole Beneficiary
• ——————–[A] Considerations Affecting Choice of Distribution
• ——————–[B] Death in Calendar Year before Year Attaining Age 65 ½
• ——————–[C] Death in Calendar Year Attaining Age 65 ½ or Subsequent Years
• —————[vi] Distribution Rules when Spouse Not the Sole Beneficiary
• ——————–[A] Factors Affecting the Choice of a Distribution Rule
• ——————–[B] Special Rule for Beneficiary Rollover from Plan to Inherited IRA
• —————[vii] Qualifying the Surviving Spouse as the Sole Beneficiary
• —————[viii] Death of the Oldest Designated Beneficiary
• ———-[d] Use of Trusts to Provide for Beneficiaries
• —————[i] Advantages of Using a Trust for Beneficiaries
• —————[ii] Designated Beneficiary Exception for Certain Trusts
• —————[iii] Use of Conduit or Grantor Trusts
• —————[iv] Use of Other Trusts with Identifiable Beneficiaries
• —————[v] Use of Powers of Appointment
• —————[vi] Trust with Non-Individual Beneficiary
• —————[vii] Separate Accounts, Separate Trusts, and Sub-Trusts
• —————[viii] Special Needs Trusts: Structuring and Funding
• —————[ix] Identifying Trust Beneficiaries’ with an Interest in a Plan or Arrangement
• —————[x] Eliminating Beneficiaries Before Finally Determining Designated Beneficiaries
• —————[xi] Payment by a Trust of Estate’s Expenses, Creditors, and Taxes
• —————[xii] Taxation of Retirement Benefits to Trusts and Their Beneficiaries
• ——————–[A] Trust Tax Accounting in General
• ————————-[I] Simple Trusts, Complex Trusts, and Other Trusts
• ————————-[II] Income for Trust Accounting Purposes
• ————————-[III] Distributable Net Income (DNI)
• ——————–[B] Taxation of Simple Trusts and Their Beneficiaries
• ——————–[C] Taxation of Complex Trusts and their Beneficiaries
• ————————-[I] Trust Deduction for Distributions to Beneficiaries
• ————————-[II] Amount and Character of Distributions to Beneficiaries
• ————————-[III] Treatment of Charitable Contributions Paid by Complex Trust
• ————————-[IV] Treatment of Separate Shares as Separate Trusts
• ——————–[D] Distributions within 65 Days after the End of a Taxable Year
• ——————–[E] Transfer by a Trust of Beneficial Interest in an IRA or Other Plan
• —————[xiii] Use of Charitable Remainder Trusts
• ———-[e] Minimum Distributions for Successor Beneficiaries
• ———-[f] Trusteed IRA as Alternative to Naming Trust as Beneficiary
• —–[3] Distributions in Excess of Required Minimum Distribution
• —–[4] Annuity Starting After Date Minimum Distributions Required
• ———-[a] General Treatment of Late-Starting Annuity
• ———-[b] Qualified Longevity Annuity Contract (QLAC)
• —————[i] Qualifying Longevity Annuity Contracts (QLACs) in General
• ——————–[A] Purpose and Availability of QLACs
• ——————–[B] Definition of a QLAC
• ——————–[C] Advantages of a QLAC
• ——————–[D] The Dollar and Percentage Limitations on QLAC Premiums
• —————[ii] Surviving Spouse as Sole Beneficiary of a QLAC
• —————[iii]  Surviving Spouse Not Sole Beneficiary of a QLAC
• —————[iv] Coordination with Required Spousal Annuity Rules
• —————[v] Separate Accounts for QLAC Beneficiaries
• —————[vi] Planning with Rollovers and Roth Conversions
• ——————–[A] Planning with Ordinary Rollovers
• ——————–[B] Planning with Roth Conversions and Rollovers
• —–[5] Valuation of Illiquid Investments

• § 8.05 Problematic Distributions/Transfers for Minimum Distribution Purposes
• —–[1] Trustee-to-Trustee Transfers
• —–[2] Indirect Rollovers
• —–[3] Other Distributions

• § 8.06 Aggregation or Division of Qualified Retirement Plans, IRAs or Roth IRAs
• —–[1] Minimum Distributions Must Generally Be Determined Separately
• —–[2] Meaning of Separate Accounts
• —–[3] Advantages of Separate Accounts for Beneficiaries
• —–[4] Divisions of Plan Accounts and Inherited IRAs Held by Trusts
• —–[5] Separate Accounts Not Available for Plan or IRA with Estate as Beneficiary

• § 8.07 Source of Funds Used to Make Minimum Distributions

• § 8.08 Effect of QDROs on Minimum Distributions
• —–[1] QDROs and Minimum Distributions Generally
• —–[2] Payment Delays Due to QDRO Determinations or Insurance Company Insolvency

• § 8.09 Minimum Distributions if Surviving Spouse Elects Ownership of IRA or Roth IRA
• —–[1] Requirements and Consequences of a Spousal Ownership Election
• —–[2] Using the Ownership Election to Defer Income Taxes
• —–[3] Spouse Younger than Retiree Who Dies on or After Required Beginning Date (RBD)
• —–[4] Spouse Younger than 66 ½ and Retiree Dies Before Required Beginning Date (RBD)
• —–[5] Surviving Spouse Younger than Retiree in Other Situations
• —–[6] Surviving Spouse Older than Retiree
• —–[7] Spousal Ownership of Roth IRAs
• —–[8] Ownership Election for Young Spouse Who Needs Income?
• —–[9] Alternative Where IRA (or Roth IRA) Ownership Election Not Available
• —-[10]  Alternative for Funds Rolled Over from Employer Plans to IRAs

• § 8.10 Effect of Disclaimers on Required Minimum Distributions
• —–[1] Qualified Disclaimers of Interests in Plans and Arrangements
• —–[2] Using Qualified Disclaimers to Plan Minimum Distributions

• § 8.11 Suspension of Minimum Distribution Requirements for 2009

» Chapter 9 – UNFUNDED NONQUALIFIED EMPLOYER PLANS