Tax-Efficient Distribution Strategies Needed Now for Certain Inherited Retirement Plans

Private client associate Brian Balduzzi authored an article for the Pennsylvania CPA Journal titled “Tax-Efficient Distribution Strategies Needed Now for Certain Inherited Retirement Plans.”

In the article, Balduzzi notes a renewed expectation of annual required minimum distributions (RMDs) for calendar year 2025. He discusses the SECURE Act final regulations, including designated beneficiaries who do not qualify as eligible designated beneficiaries of an inherited qualified retirement plan benefits (QRPB) must take annual RMDs for each year following the year of the decedent-plan-participant’s death.

Balduzzi advises proactive tax planning and that advisers help calculate the annual RMD that such beneficiaries must take and communicate the potential tax consequences over the remaining duration of the payout period of the inherited plans.