In a surprise move in January, the IRS completely revamped the "required minimum distribution" regulations under section 401(a)(9) that had been used since 1987. The new rules are easier to use, require smaller minimum distributions, and avoid traps that had dire consequences.
Under the old rules, the amount of IRA payments to persons over age 70-1/2, or plan payments at the later of age 70-1/2 or retirement, depended on several critical choices that had to be made by the "required beginning date." The minimum distribution depended on the age and identity of the beneficiary, and which method of calculating life expectancy was used. Some of these choices could have adverse consequences if the owner and/or beneficiary died early.
