Five-Year Rule

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Five-Year Rule

An option for the heir of an IRA account holder who dies before the required beginning date. Under the five-year rule, the appropriate heir must receive all assets from the IRA by December 31 of the fifth year following the account holder's death. The heir may opt out of the five-year rule and receive the assets over his/her life expectancy, effectively treating the heir as if he/she were the account holder. It is important to note that the five-year rule only applies to account holders who die before the required beginning date.
References in periodicals archive ?
After 5-year rule, he was killed along with 16 family members in a coup on April 27, 1978.
Pakistan Railways' is said to have suffered a colossal loss of more than Rs 142 billion during PPP's 5-year rule.
Replying to a question regarding dividing Southern Punjab into 11 administrable (manageable) districts, he strongly lambasted elements trying to take a political mileage over the issue, while during their 5-year rule these very elements, managed a mere developmental allocation of Rs.
cumulative period of service must not have exceeded 5 years, unless an exception to the 5-year rule applies;
Requiring that the account be distributed in full within five years hurts individual beneficiaries because, absent the 5-Year Rule, the individuals could use Table 3 which will usually allow a much longer tax-free buildup.
Example 12: Use the facts of Example 11, but assume that the IRA is divided into two accounts on or before September 30, 2004 In this case, the charity will still have to use the 5-Year Rule, but since charities don't pay income tax this is of no concern.
Talking exclusively to renowned political figure of Chaach Attock, and CEO moon builders, Tariq Din, Imran Khan was chagrined that instead of delivering to the masses during their 5-year rule, both Zardari and PM-N had their woes compounded beyond limits.