Qualifying Longevity Annuity. Contract (QLAC). The fair market value of any QLAC you hold in this IRA is not included in determining your adjusted account balance when calculating your RMD. If however, you make an excess premium payment (premium payment that causes you to exceed the $125,000 (as adjusted) or 25% of balance limitations) and the excess premium is returned to the non-QLAC portion of your IRA after the valuation date to determine the next year's RMD, such amount is added to the adjusted account balance used for the year of the return to calculate your RMD. RMDs For Your Beneficiaries. Your beneficiaries will generally have until December 31 of the year following your death year to begin taking RMDs. Exceptions exist for your surviving spouse and for any beneficiary who must distribute or chooses to distribute his/her share of your SIMPLE IRA within a five-year period. If your death occurs on or after your RBD, your beneficiaries must withdraw any of your RMD that you had not received during the year of your death.
Qualifying Longevity Annuity. Contract (QLAC). The fair market value of any QLAC you hold in this IRA is not included in determining your adjusted account balance when calculating your RMD. If however, you make an excess premium payment (premium payment that causes you to exceed the $155,000 (as adjusted) or 25% of balance limitations) and the excess premium is returned to the non-QLAC portion of your IRA after the valuation date to determine the next year's RMD, such amount is added to the adjusted account balance used for the year of the return to calculate your RMD. RMDs For Your Beneficiaries. In February 2022, the IRS issued proposed rules and the pending final rules may change some of the following provisions. In addition, for certain beneficiaries subject to the ten-year rule described below, the 2022 proposed rules may also require annual distributions. Your beneficiary should consult his or her tax or legal professional regarding the most current beneficiary RMD regulations. required to remove all assets from the SIMPLE IRA by December 31 of the tenth year following the year of your death. Your spouse beneficiary can treat your SIMPLE IRA as his/her own IRA if your spouse is the only designated beneficiary, or if there are multiple designated beneficiaries and separate accounting applies. He/she has this option even if he/she had chosen one of the other options above. This generally happens after any of your remaining RMD amount for the year of your death has been distributed. Your spouse beneficiary can take a distribution of part or all of his/her share of your SIMPLE IRA and roll it over to an IRA of his/her own, less any RMD.
