Essential Tips for RMD Successor Beneficiaries

​The “Successor Beneficiary” option in ProTracker Advantage® accommodates inheritors after the deaths of the Participant and the Designated Beneficiary.

​Successor Beneficiaries must follow the new 10-Year Rule wherein account custodians must distribute the total amount of the retirement account within ten years, or sooner if the Designated Beneficiary had a shorter life expectancy.
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In the image below, the Designated Beneficiary (“Previous Beneficiary”) has a life expectancy of only 2.3 years. Therefore, the account must be fully paid out during the next three years, not ten years. There is no “10-Year Rule reset.”

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