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IRA Beneficiary Payout Options: The New Rules and When They Take Effect

The Proposed Regulations released in February 2022 tried to clarify the original intention of the SECURE Act of 2020. After waiting in limbo for over two years, in July 2024 the IRS released the final regulations that take effect beginning in 2025. This webinar will cover the regulations and what you need to know.

Upcoming
Thursday, March 13th, 2025
10:00 am - 12:00 pm
Presented by Patrice Konarik
$299.00 or 1 Token

Includes: Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts

  • Customer Service
  • Deposit
  • Deposit Accounts
  • IRAs
  • Reporting
  • Teller
  • Trusts
  • Customer Service Representative
  • Deposit Operations Manager/Specialist
  • Internal Auditor
  • New Accounts Representative
  • Private Banker
  • Teller
  • Training Manager
  • Trainer
  • Trust Officer

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As if paying out to an IRA Beneficiary was not confusing enough, the IRS substantially changed the payout options for most beneficiaries by passing the SECURE Act effective 2020. While the regulations made it clear that most non-spouse beneficiaries had to have their Inherited IRAs closed by December 31 of the tenth year after the owner died, it was left unclear whether or not beneficiaries of owners who had reached their RMD status had to take a distribution in the first nine years or were they optional?

After issuing the Proposed Regulations in February 2022 indicating some beneficiaries would have to take a distribution the first nine years, the IRS failed to finalize the Proposed Regulations until July 2024. During that time, the IRS waived the “late penalty” for beneficiaries who did not take an RMD death distribution in years 2021-2024.

Effective 2025, some beneficiaries will have to begin taking death distributions or they will be subject to an IRS penalty of up to 25%. This informational two-hour webinar will answer the who, when, and how questions of calculating RMDs to beneficiaries for 2025. A Sample Letter to beneficiaries to inform them of the rule change and their RMD requirements will be included.

What You'll Learn

  • What is meant by the “Required Beginning Date” to determine which IRA owners are in RMD status at death?
  • Do beneficiaries who chose to skip their RMDs in 2021-2024 have to make them up in 2025?
  • How do we calculate the 2025 divisor for owners who died beginning in 2020?
  • What are the three classes of beneficiaries to determine their payout options?
  • What are the new distribution rules regarding a surviving spouse setting up an Inherited IRA?
  • Do we use the owner’s age or the beneficiary’s age on the Single Life Table to obtain the divisor for RMD purposes?
  • What are the rules for successor beneficiaries when the original owner died before 2020 or beginning in 2020?
  • What penalties may be imposed if the beneficiary does not begin death distributions in 2025?
  • What are the final regulations for payout options to a trust beneficiary?

Who Should Attend

All CSRs, tellers, operations department reps, call center employees, and anyone who determines who the beneficiaries are for payout options would greatly benefit from this two-hour informational webinar.

Patrice Konarik

Instructor Bio

Patrice M Konarik is president of Sunwest Training Corp founded almost 30 years ago and located in the Texas Hill Country near San Antonio. With over 40 years of experience in the financial industry, Patrice has focused her expertise on the retirement account area. After 28 years on the road providing live training nationwide, she now concentrates on providing informational IRA and HSA webinars through OnCourse Learning. She has a B.S. in Management Science from New York’s Binghamton University and previously held her Certified Financial Planner designation for 23 years.

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