Take the money and run
This may be necessary if a 75 year old client rolled their Traditional IRA from another institution to us in June, and they haven't taken any IRA distributions this year.
What is a Year-End Balance Adjustment?
Once you start a SEPP-72T plan you must continue taking payments for at least 5 years or until you reach this age, whichever is longer
What is age 59 1/2?
Clients must make this available to process a return of excess.
What is Cash?
In the year of death who is required to satisfy any outstanding RMD not taken by the account owner.
Who is the beneficiary?
The annual limit for Qualified Charitable Distributions.
What is $108,000?
This is the IRS form I file to report that I have taken a missed RMD.
What is form 5329?
True or False: You can take extra distributions above your scheduled SEPP-72T amount without penalty?
What is False?
77-year old client completed a Roth conversion in May of 2025 and now is calling in July stating that he has not taken RMD. Client would need to take these next steps to correct this?
What is submitting a ROE form with a LOI?
A decedent's spouse who is listed as sole primary beneficiary on the decedent's IRA has these options for how to handle the assets.
What is Assume, Inherit or Disclaim?
Check writing checks from IRA accounts for QCD’s need to be cashed by what date to count towards RMD’s for the current tax year
What is December 31st?
I can use the joint life table to calculate my RMD if I meet these two requirements
What is when my spouse is more than 10 years younger and is my primary beneficiary for the entire year?
Breaking a SEPP-72T plan early results in having to pay this, plus interest, on all withdrawals taken
What is the 10% early withdrawal penalty retroactively applied?
The last year by which the client can file timely ROE for the excess contribution deposited for the tax year 2025 in 2026
What is 2027?
The penalty for failing to take a required distribution from an inherited IRA was reduced to this percentage, provided the error is corrected in a timely manner.
What is 25%, reduced to 10% if corrected?
IRA owner must be this age on the date of distribution to be eligible for a QCD
What is 70 1/2 years old?
According to the IRS this is considered timely when taking a missed RMD to get the penalty reduced from 25% to 10%
What is two years?
Careful planning is needed since once you start SEPP-72T, you cannot stop taking withdrawals unless you meet one of these two IRS-recognized exceptions
What is disability or death?
The procedure a client needs to follow when they mistakenly take a withdrawal instead of completing a ROE
What is recode? ROE form and LOI
The 10 year rule doesn’t require annual RMDs if the original owner died before this key date
What is the Required Beginning Date? (RBD)
Charitable Giving Accounts are eligible to receive Qualified Charitable Distributions.
What is no?
Charitable Giving Accounts are donor-advised funds and ineligible for QCD treatment under Secure Act 2.0.
If the deceased spouse passed in a prior year, and the transfer to the surviving spouse took place in the current year who will calculate the RMD.
What is a tax professional?
The IRS permits these three calculation methods for determining SEPP-72T payments
What are the Required Minimun Distribution method, Fixed Amortization method, and Fixed Annuitization method?
The IRS Method used for calculating earnings and losses.
What is Net Income Attributable?
NIA = Excess contribution amount X (Closing Balance - Opening Balance / Opening Balance)
Which of the following is not an eligible designated beneficiary:
- A Spouse
- A Disabled Person
- A Child of the IRA owner
- A Chronically Ill Person
- A Person who is Not More Than 10 Years Younger than the IRA owner
What is a Child of the IRA owner?