Additional Required Minimum Distribution (RMD) rules:
Traditional IRA, SEP IRA, SIMPLE IRA and 401(k) participants are required to distribute a minimum amount from their retirement plan when they reach the age of 73
Their first year RMD can be postponed until April 1st of the year following the year they turn age 73
There is a 50% penalty associated with failure to take an RMD. For Solo 401(k) plans failure to distribute an RMD is a plan qualification issue and must be addressed using the IRS Correction program
The prior year end balance must be adjusted by any outstanding rollovers and transfers
For individual Solo 401(k) plans Designated Roth contributions and after-tax contributions are included in the balance determination
Roth accounts are not subject to (RMDs) while the Roth holder is alive
This calculation may be superseded if the Traditional 401(k) or Plan Participants names a spouse as the sole beneficiary and the spouse is greater than 10 years younger. The joint life expectancy table may be used to further reduce the RMD
5% owners cannot delay taking their RMD
In the event of a beneficiary's death the calculation will be affected in the year after death
In the event of a divorce, the calculation will only be affected in the year after death unless the IRA holder or participant changes the beneficiary election in the year of the divorce
For beneficiaries who need to satisfy the (+G14:X14RMD) in the year of death will calculate the RMD as if the IRA holder or participant was alive for the entire year of death
Each beneficiary must satisfy their proportionate share of the RMD based on the beneficiary designation form allocated percentages
RMD distributions paid to a beneficiary, Trust or Estate must the beneficiary's SSN, Trust and Estate EIN