In an unanticipated move, the Department of Treasury has issued a substantial revision to the Proposed Treasury Regulations ("Proposed Regs.") that govern Minimum Required Distribution ("MRD") from IRAs and qualified retirement plans. The changes affect distributions both after age 70 ½ and after the owner's death. These alterations substantially change the MRD rules that have been in place since 1987! The new Proposed Regs. considerably simplify the distribution rules and are retroactive to January 1, 2001.
Determination Of Designated Beneficiary
Probably the most significant change made by the new Proposed Regs. relates to determining a designated beneficiary. Under the old rules, a designated beneficiary had to be determined by the participant's Required Beginning Date ("RBD"). The RBD is April 1st of the year following the year in which the participant reaches age 70 ½. All future distributions were based upon calculations that took into consideration the beneficiary
