February 23, 2009
Income averaging strategy used to determine taxes on a lump-sum distribution as if the distribution occurred over a five-year period, resulting in a reduction of taxes that would otherwise be owed on the amount.
IRC § 402(d), Treas. Reg. §1.402(e)-2(d)
The Small Business Job Protection Act of 1996 eliminated the five-year averaging.
The 10-year rule is a distribution rule that applies to certain beneficiaries who inherit an IRA or employer-sponsored retirement plan account. Under the rule, the
The still-working exception is a rule that may allow a participant in an employer-sponsored retirement plan to delay required minimum distributions (RMDs) beyond the participant’s
RMD Correction window The correction window is the period during which a missed required minimum distribution (RMD) can be corrected in a way that may
Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches