In the event the owner of a traditional IRA dies before the required distribution date, there are two options for which a beneficiary can choose to effectively begin taking distributions. These two options are: 1. The life expectancy rule; or 2. The five year rule Below we will go into detail of the differences of these two options and how they will effect a beneficiaries distributions from the decedents traditional IRA. Life Expectancy Rule The life expectancy rule basically states … Read more →

Once a taxpayer reaches the age of 70 and a half they are required by the IRS to start making minimum distributions from their traditional IRA. The taxpayer is allowed however to begin making the distributions on April 1st of the year following the year in which they have turned 70 and a half years old. It is important to remember that if a taxpayer waits until April 1st of the following year they will be required to take two … Read more →