About a month ago there was a thread here on the issue of inherited IRAs and their beneficiaries. A point of disagreement arose between me and Bees Knees regarding the "5-year rule." Bees, of course, was absolutely certain of his/her interpretation of the rule, whereas I was troubled by statements and examples in IRS Pub 590 which seem to contradict the apparent meaning of the Code and/or Regs.
I sent portions of that thread to the IRS Pub writing folks in Washington DC, along with suggestions regarding ways to clarify the relevant Pub. Today I received a reply, and it is reproduced below. This will not resolve the disagreements in that prior thread, but at least we may eventually see revisions to Pub 590 ... hopefully next year ... that will clear up the ambiguities.
Here's the IRS's reply:
Thank you for your comments on Publication 590, Individual Retirement Arrangements (IRAs). Required minimum distributions for IRA beneficiaries is a complicated issue and that section of the publication, including the discussion of the 5-year rule, would benefit from some clarification. As we revise the publication, we will consider your suggestions to clarify the discussion, including the examples, and will consider the inclusion of a table or flowchart.
Thank you for your interest in our tax products .
Sincerely ,
Rick L. Baker
Chief, Individual Specialty Publications
Tax Forms & Publications
1111 Constitution Ave NW
Washington, DC 20224
202-927-9543
I sent portions of that thread to the IRS Pub writing folks in Washington DC, along with suggestions regarding ways to clarify the relevant Pub. Today I received a reply, and it is reproduced below. This will not resolve the disagreements in that prior thread, but at least we may eventually see revisions to Pub 590 ... hopefully next year ... that will clear up the ambiguities.
Here's the IRS's reply:
Thank you for your comments on Publication 590, Individual Retirement Arrangements (IRAs). Required minimum distributions for IRA beneficiaries is a complicated issue and that section of the publication, including the discussion of the 5-year rule, would benefit from some clarification. As we revise the publication, we will consider your suggestions to clarify the discussion, including the examples, and will consider the inclusion of a table or flowchart.
Thank you for your interest in our tax products .
Sincerely ,
Rick L. Baker
Chief, Individual Specialty Publications
Tax Forms & Publications
1111 Constitution Ave NW
Washington, DC 20224
202-927-9543