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The following questions provide a quick way to gauge your knowledge of the
required distributions from IRA's, qualified retirement plans and TSA's under §403(b).
Everyone with assets in a retirement plan, regardless of his or her age, or the
beneficiary of such plans needs to have a reasonable understanding of minimum required
distributions. In certain circumstances, that understanding can be more valuable than the
selection of a prudent investment.
- Explain the
difference between a Designated Beneficiary and a recipient
named on a beneficiary designation form? [§1.401(a)(9)-4, A-1]
- For purposes
of required distributions paid to a
beneficiary in 2003 and subsequent years, what action must be taken in every case that
involves the death of a plan participant before January 1, 2003? [§1.401(a)(9)-1,
A-2(b)(1)]
- What is the
deadline to establish separate
accounts that allow the beneficiary of each respective separate account to use his or
her own life expectancy when computing the maximum stretch-out potential? [§1.401(a)(9)-8, A-3]
- List the four requisites a revocable trust
must fulfill in order for it to serve as a suitable beneficiary of an IRA, TSA or
qualified retirement plan? What is the deadline
for satisfying each of those requirements? [§1.401(a)(9)-4, A-5(b)]
- How do you
determine the applicable distribution period for required distributions following a participant’s post-RBD death
if the account has no Designated Beneficiary? [§1.401(a)(9)-5,
A-5(c)(3)]
- If a QTIP trust is used as
a beneficiary for a qualified plan, what resource document spells out the guidelines
that such a trust must follow in order to qualify for the marital deduction and also
satisfy the minimum distribution rules?
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