An Introduction to the Secure Act for Qualified Retirement Plans and IRA Minimum Distribution Rules
By Anthony Diosdi The policy behind creating tax advantage qualified retirement plans and Individual Retirement Accounts or “IRAs” under the Internal Revenue Code is to provide income to employees when they retire from employment. This goal would not be satisfied if employees could infinitely defer the receipt of income from these plans. The regulations under Internal Revenue Code Section 401(a)(9) provides guidance to plan participants, IRA owners and beneficiaries as to the amounts which must be distributed from a qualified plan or IRA on an annual basis and be subjected to income tax. All qualified retirement plans and individual retirement accounts are subject to the minimum distribution rules. The minimum distribution rules also apply to SEPS, tax sheltered annuities, and certain deferred compensation plans for employees of tax-exempt organizations or…