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- Title
DISTRIBUTION PLANNING UPDATE.
- Authors
Caudill, April K.
- Abstract
The article addresses the changes in laws affecting individual retirement account distributions in the U.S. The basic minimum distributions requirement for lifetime distributions is that the client must receive his or her first distribution by April 1 after the calendar year in which he or she reaches age 70 and a half. One reason the adviser's role is so important is that individual retirement account custodians do not always have all the information they need to issue the correct distribution. After the client reached his or her required beginning date, the retirement account trustee or custodian is obligated to make the required minimum distribution from the account. One rule that has been consistent throughout the mutations of the required minimum distribution regulations is that if there are multiple beneficiaries, the life expectancy used to determine the payout requirements is the shortest. Despite the overhaul and finalization of the final required minimum distribution regulations, questions and pitfalls may always remain even for the most informed professionals. Distribution planning is an almost universal need as baby boomers age, yet an area in which no planner should operate without understanding is up-to-date and ongoing resource information.
- Subjects
UNITED States; LUMP sum distributions (Pensions); INDIVIDUAL retirement account laws; RETIREMENT planning; BABY boom generation; FINANCIAL planning
- Publication
Journal of Financial Service Professionals, 2004, Vol 58, Issue 2, p36
- ISSN
1537-1816
- Publication type
Article