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] Non-Aggregation of Tax-Favored Plans
• —–[8] Division of Tax-Favored Plans
• —–[9] Source of Funds for Distributions
• —-[10] Use of Trusts to Provide for Beneficiaries
• —-[11] Suspension of Minimum Distributions for 2020

• § 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] Meeting Minimum Distribution Requirements
• ———-[b] Meeting Initial Minimum Distribution Requirement for Annuities
• ———-[c] Annuity Beginning Too Late to Meet Initial Minimum Distribution Requirements
• ———-[d] Annuity Starting before Required Beginning Date (RBD)
• —–[2] Requirements Applicable to Fixed Term Annuities
• ———-[a] Meeting 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 Met
• ———-[b] Payments to Younger Nonspouse Beneficiary
• ———-[c] Minor Child
• ———-[d] Payments for a Period Certain with, or without, a Lifetime Annuity
• —–[4] Annuity Payments that Increase Over Time
• ———-[a] Increases Allowed by Tax Law
• ———-[b] Additional Exceptions for Purchased Annuities
• —————[i] Exceptions Applicable to Purchased Annuities
• —————[ii] Special Exceptions for Certain Types of Purchased Annuities
• ———-[c] Additional Exceptions for Certain Annuities Paid by a Defined Benefit Plan
• ———-[d] Exceptions for Increased Annuity Payments to Beneficiaries
• —–[5] Changing the Annuity Payment Period
• —–[6] Insurance Company Annuity Purchased by Tax-Favored Plan
• —–[7] Additional Rules for Annuities Under Defined Benefit Plans
• ———-[a] Accrual of Additional Benefits
• ———-[b] Retirement After the Applicable Age
• ———-[c] Lump Sum Distribution in Lieu of Annuity
• —–[8] Separate Shares for Two or More Beneficiaries
• —–[9] Restrictions Applicable to Annuities Purchased by Defined Contribution Plans

• § 8.04 Minimum Distribution Requirements for Non-Annuities
• —–[1] Required Non-Annuity Distributions to the Retiree
• ———-[a] When Required Non-Annuity Distributions Must Commence
• ———-[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 for Beneficiaries in Defined Contribution Plans
• ———-[a] Different Distribution Requirements Apply to Different Classes of Beneficiaries
• —————[i] Different Classes of Beneficiaries in Defined Contribution Plans
• —————[ii] Definition of Eligible Designated Beneficiary
• ——————–[A] Identification of EDBs
• ——————–[B] Disabled Individual
• ——————–[C] Minor Child
• ——————–[D] Chronically Ill Individual
• ——————–[E] EDB Status Determined as of Date of Death of Retiree
• —————[iii] Ineligible Designated Beneficiaries and Nondesignated Beneficiaries
• ———-[b] Non-Annuity Distributions When Retiree Dies on or after the RBD
• ———-[c] Non-Annuity Distributions When Retiree Dies before the RBD
• —————[i] Non-Annuity Distributions When Retiree Dies before the RBD Generally
• —————[ii] Distributions to Ineligible Designated Beneficiaries
• —————[iii] Distributions to Eligible Designated Beneficiaries (EDBs)
• ——————–[A] Distributions When the Only Beneficiaries of a Plan Are EDBs
• ——————–[B] Distributions When a Plan Has Both EDBs and IDBs
• ——————–[C] Distributions to EDBs under the Ten-Year Rule
• ——————–[D] Distributions to EDBs under the Life-Expectancy Rule
• ——————–[E] The Life Expectancy of the Oldest EDB
• —————[iv] When Spouse Is the Sole Beneficiary (Sole EDB)
• ——————–[A] Choice of the Ten-Year Rule or the Life-Expectancy Rule
• ——————–[B] Death in Calendar Year before Year Attaining Age 62
• ——————–[C] Death in Calendar Year Attaining Age 62 or Subsequent Years
• ——————–[D] Distributions Computed by Annually Redetermining Life Expectancy
• ——————–[E] The Surviving Spouse’s IRA Ownership Option
• ——————–[F] Spouse Dies before Minimum Distributions Required
• ——————–[G] Qualifying the Surviving Spouse as the Sole Beneficiary
• ——————–[H] Surviving Spouse’s Election to be Treated as the Participant
• —————[v] If Spouse Is Not the Sole Beneficiary
• ——————–[A] Choice of the Method of Distribution
• ——————–[B] Distributions Based on Life Expectancy in the First Distribution Year
• ———-[d] Death of a Designated Beneficiary
• ————–[i] Primary Beneficiaries and Successor Beneficiaries
• ————–[ii] Death of an Eligible Designated Beneficiary
• ————–[iii] Death of an Eligible Designated Beneficiary in Plan with Multiple Beneficiaries
• ————–[iv] Distributions under Primary Ten-Year Rule Unchanged by Death of Beneficiary
• ————–[v] Deceased Designated Beneficiary of Participant Dying Before 2020
• ——————–[A] Treatment of Designated Beneficiary of Participant Dying Before 2020
• ——————–[B] Separate Plan Accounts for Multiple Designated Beneficiaries
• ————–[vi]  Application of the Successor Ten-Year Rule to Minors
• ————–[vii]  Surviving Spouse in a Pre-2020 Plan Dies Before Distributions Required
• ————–[viii] Death of an EDB Holding a Plan Interest Through a See-Through Trust
• ———-[e] Managing Distributions under the Ten-Year Rule
• ———-[f] Special Rule for Beneficiary Rollover from Plan to Inherited IRA
• —————[i] Rollover by Nonspouse Beneficiary from Qualified Plan to Inherited IRA
• —————[ii] Rollover by Surviving Spouse from Qualified Plan to an IRA
• —————[iii] Special Rule Allowing an EDB to Switch to the Life-Expectancy Rule
• ———-[g] Identifying Designated Beneficiaries
• ———-[h] Treatment of Nondesignated Beneficiaries (NDBs)
• —————[i] Identification of Nondesignated Beneficiaries (NDBs)
• —————[ii] Distributions to Nondesignated Beneficiaries (NDBs)
• ——————–[A] Distributions to an NDB if the Retiree Dies on or after His RBD
• ——————–[B] Distributions to an NDB if the Retiree Dies before His RBD
• ———-[i] Transition Rules for Beneficiary Distributions under the SECURE Act of 2019
• ———-[j] Non-Annuity Distributions to Beneficiaries before the SECURE Act
• —————[i] Determination of the Required Beginning Date (RBD)
• —————[ii] Death of the Participant on or after the Required Beginning Date (RBD)
• ——————–[A] Distributions Are a Fraction of the Adjusted Account Balance
• ——————–[B] Payment of Deceased Participant’s Unpaid Minimum Distribution
• ——————–[C] No Designated Beneficiary
• ——————–[D] Spouse as Sole Designated Beneficiary
• ——————–[E] Other Designated Beneficiaries
• —————[iii] Death of the Participant before the Required Beginning Date (RBD)
• —————[iv] Unchanged Treatment of 457 Nongovernment Exempt Organization Plans
• ———-[k] Use of Trusts to Provide for Beneficiaries
• —————[i] Advantages of Using a Trust for Beneficiaries
• —————[ii] Designated Beneficiary Exception for See-Through Trusts
• ——————–[A] Requirements for Qualifying as a See-Through Trust
• ——————–[B] Trust Beneficiaries Who are Deemed “Designated”
• ——————–[C] Trust Beneficiaries Who are Designated Beneficiaries
• —————[iii] Use of Conduit Trusts
• —————[iv] Use of Accumulation Trusts with Identifiable Beneficiaries
• —————[v] Use of Powers of Appointment, Reformation, or Decanting
• ——————–[A] Exercise or Non-Exercise of Powers of Appointment
• ——————–[B] Adding or Removing Beneficiaries by Reformation or Decanting
• ——————–[C] Different Distribution Period Due to Late Addition of Beneficiary
• —————[vi] Trust with Non-Individual Beneficiary
• —————[vii] Separate Accounts, Separate Trusts, and Subtrusts
• —————[viii] Applicable Multi-Beneficiary Trust (AMBT)
• —————[ix] Spray Trust as Beneficiary of a Tax-Favored Plan
• —————[x] Identifying Trust Beneficiaries with an Interest in a Tax-Favored Plan
• —————[xi] Payment by a Trust of the Estate’s Expenses, Creditors, and Taxes
• —————[xii] Distributions to a See-Through Trust After Death of an EDB
• ——————–[A] Treatment of Distributions to a See-Through Trust After Death of an EDB
• ——————–[B] Separate Subtrusts May Protect Nondeceased EDBs
• ——————–[C] Applicable Multi-Beneficiary Trusts May Protect EDBs
• ——————–[D] Trust Receiving Life-Expectancy Distributions from Pre-2020 Plan
• ——————–[E] Treatment of See-Through Trusts with Beneficiaries Who Are Minors
• —————[xiii] Trusteed IRA as Alternative to Naming Trust as Beneficiary
• —————[xiv] 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
• —————[xv] Use of Charitable Remainder Trusts
• —–[3] Distributions in Excess of Required Minimum Distribution
• —–[4] Annuities Purchased by Defined Contribution Plans
• ———-[a] General Treatment of Annuities in Defined Contribution Plans
• ———-[b] General Treatment of Late-Starting Annuities
• ———-[c] Alternative Election for Annuities in Defined Contribution Plans
• ———-[d] Qualifying Longevity Annuity Contracts (QLACs)
• —————[i] Qualifying Longevity Annuity Contracts (QLACs) in General
• ——————–[A] Purpose and Availability of QLACs
• ——————–[B] Definition and Requirements of a QLAC
• ——————–[C] Advantages of a QLAC
• ——————–[D] The Dollar Limitation 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
• —–[5] Valuation of Illiquid Investments

• § 8.05 Problematic Distributions/Transfers for Minimum Distribution Purposes
• —–[1] Trustee-to-Trustee Transfers
• —–[2] Indirect Rollovers
• ———-[a] Problematic Indirect Rollovers Generally
• ———-[b] Rollovers Only after Minimum Distributions Met
• ———-[c] Rollovers to a Recipient Plan in a Year after the Distribution
• —–[3] Other Distributions Disregarded for Minimum Distribution Purposes

• § 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 Tax-Favored Plan 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] Spousal Ownership of Roth IRAs
• —–[4] Alternative When IRA Ownership Election Not Available

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

• § 8.11 Suspension of Minimum Distribution Requirements for 2020

» Chapter 9 – UNFUNDED NONQUALIFIED EMPLOYER PLANS