IRS Helps Taxpayers Preserve Retirement Savings and Protect Against 50% RMD Rule When Investment Losses Occur
The Treasury Department and the Internal Revenue Service have released final rulings with regard to changes in the way required minimum distributions are figured for IRA owners. These changes will help taxpayers preserve their retirement savings through new distribution tables. Additionally, the new regulation protects plan owners from the 50% RMD penalty when their IRA (through investment losses) do not have funds to meet the required distributions.