The SECURE Act of 2019 introduced a new term “Eligible Designated Beneficiary.” The Act established a 10-Year Rule as the maximum payout period for inherited retirement accounts that were inherited from participants dying after 12/31/2019, with a few exceptions. The exceptions apply to Eligible Designated Beneficiaries (EDBs), defined as follows:
ProTracker Advantage® fully implements the SECURE Act provisions. Here’s an example of the Advantage RMD Calculator setup screen for an Eligible Designated Beneficiary (a spouse). See Step 5 (10-Year Rule Exception checkbox, with Reason):
For more information about calculating Required Minimum Distributions and documenting them, click on https://www.protrackerRMD.com.