CRPC Required Minimum Distributions and Beneficiary Planning

Question 1

Under SECURE 2.0, what is the required minimum distribution starting age for an individual born in 1955?

Accepted Answer

Age 73

Answer

Age 70½

Answer

Age 72

Answer

Age 75

Question 2

What is the excise tax penalty for failing to take a required minimum distribution under SECURE 2.0?

Accepted Answer

25% of the shortfall, reducible to 10% if corrected timely

Answer

10% of the shortfall

Answer

50% of the shortfall

Answer

35% of the shortfall

Question 3

How is a traditional IRA's required minimum distribution calculated each year?

Accepted Answer

Prior year-end balance divided by the applicable life expectancy factor

Answer

Current balance multiplied by a fixed age-based percentage

Answer

Current balance divided by the account holder's actual remaining life expectancy

Answer

4% of the prior year-end balance

Question 4

Which retirement account type is NOT subject to required minimum distributions during the original owner's lifetime?

Accepted Answer

Roth IRA

Answer

Traditional IRA

Answer

SEP IRA

Answer

SIMPLE IRA

Question 5

Which IRS life expectancy table do most IRA owners use when calculating their RMDs?

Accepted Answer

Uniform Lifetime Table

Answer

Single Life Expectancy Table

Answer

Joint Life and Last Survivor Expectancy Table

Answer

Applicable Distribution Period Table

Question 6

An IRA owner's sole beneficiary is a spouse who is 15 years younger. Which IRS life expectancy table should be used to calculate the owner's RMDs?

Accepted Answer

Joint Life and Last Survivor Expectancy Table

Answer

Uniform Lifetime Table

Answer

Single Life Expectancy Table

Answer

Beneficiary Life Expectancy Table

Question 7

Starting in 2024 under SECURE 2.0, which retirement account type was newly exempted from RMDs during the owner's lifetime?

Accepted Answer

Roth 401(k) plans

Answer

Traditional 401(k) plans

Answer

SIMPLE 401(k) plans

Answer

Safe harbor 401(k) plans