Five-Year Rule

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 ?
The new RMD rules would change the default rule in the case of death before the individual's RBD for a non-spouse-designated beneficiary from the five-year rule to the life expectancy rule explained.
Unless the IRA specifies that the five-year rule applies, the QTIP trust must begin taking distributions over M's single life expectancy, beginning no later than Dec.
401(a)(9)(B) (ii) and (iii) sets forth the five-year rule and its exception for distributing the interest of any employee who dies before distributions have begun in accordance with Sec.
In this situation, the five-year rule applicable to a distribution of property to a partner under Sec.
When multiple rollovers are maintained in a single account, the five-year rule for regular IRA rollovers is based on the latest rollover date.
a grantor trust beneficiary) must make distributions in accordance with the five-year rule.
A nonspousal beneficiary has one available exception to the five-year rule.
In fact, while the PTI-led provincial government is heading towards end of its five-year rule, it is embarrassing for it that so far it could not even give a workable law to deal with the issue of corruption.
As they move into the home stretch of their five-year rule, Modi and his party must be working against time to make sure that Indians keep faith in them for another five years.
During Zardari's five-year rule following the 2008 elections as well the establishment had used the same trick - using the PML-N to keep the PPP government from crossing any of its well-defined red lines.
Lee Sang-deuk, a former six-term lawmaker, was a big shot during his brother's five-year rule beginning in 2008.
The Prime Minister said in nine-year rule of President Pervez Musharraf and five-year rule of President Asif Zardari, not even a single significant project was completed in this area.