In Notice 2023-54, the IRS granted relief to individuals and retirement plans from taking required minimum distributions in 2023. This applies to both individual accounts and inherited IRAs where distributions were mistakenly taken although no distribution was required. This relief appears to be the result of the IRS’s delay in issuing final regulations under the […]
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If you’re concerned about protecting your resources, here are a few thoughts on how to protect Inherited IRAs. First, define the risk you’re planning to minimize or avoid. Some States might treat all retirement accounts as exempt resources for Medicaid eligibility purposes, while others do not. If you’re worried about nursing home expenses, find out […]
Retirement accounts that qualify under the Employee Retirement Income Security Act (ERISA) are generally protected from creditors, bankruptcy proceedings and civil lawsuits. Ordinarily, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 extends similar federal protection to IRAs up to $1 million (though money rolled over from an ERISA-qualified plan into an individual […]
Treatment of retirement accounts. Section Section 2332 indicates that an applicant must apply for periodic benefits, but does not indicate whether the individual must take a minimum distribution from “each” account or whether the individual can aggregate the retirement accounts for purposes of determining whether a sufficient minimum distribution was taken. The ALJ looked to 26 C.F.R. § […]
