The Pentera Blog
Ask the Experts - Reducing minimum IRA distributions in subsequent years
Dear André,
I have a donor who is asking if the benefit of reducing required minimum distributions in subsequent years would change if the markets rebounded in the future. What if his IRA made money? Would anything change?
Thanks,
Jeff
Dear Jeff,
The minimum required distribution is based on the value of the IRA on December 31 or the year prior to the year the required minimum distribution has to be made. So if the value of the IRA goes up a lot, so will the required payment. This will be partially offset by the fact that this minimum required distribution percentage goes down each year according to the IRS table.
André
