Core Insights - Retirement accounts such as traditional IRAs and 401(k) plans allow for pre-tax investments, reducing current taxable income, but withdrawals are subject to federal income tax in the future [2] Group 1: Required Minimum Distributions (RMDs) - RMDs for account holders born between 1951 and 1959 begin at age 73, following changes from the Secure 1.0 Act and Secure 2.0 Act [5][7] - The Secure 2.0 Act eliminated RMDs for Roth 401(k) and Roth 403(b) plans while the original account holder is alive, but beneficiaries must still take RMDs [7] - RMDs must generally be completed by December 31 each year, with penalties for late withdrawals potentially reaching up to 25%, which can be reduced to 10% [7][8] Group 2: RMD Rules and Examples - RMDs are mandatory for traditional 401(k) plans and traditional IRAs starting at the specified minimum age, even if the account holder is still employed [8] - The first RMD can be delayed until April 1 of the following year, but subsequent withdrawals must be completed by December 31 of the applicable year [9]

分组1 - The article discusses the inheritance of $150,000 each by college-age children from a 401(k), which is taxable, and suggests that they may consider withdrawing the funds now while their income is low to minimize tax impact [1][6] - It emphasizes the importance of allowing the children to learn about investing and managing their finances, suggesting that the parent could oversee the funds with a power-of-attorney agreement [2][4] - The article outlines the options available for non-spouse beneficiaries under the Secure 2.0 Act, including transferring assets into an inherited IRA, opening an inherited IRA with a 10-year method, or taking a lump sum [5][6] 分组2 - It highlights the requirement for beneficiaries to start taking required minimum distributions (RMDs) if the deceased had begun taking them, with new rules effective in 2025 mandating annual RMDs starting the year after the original account owner's death [7]

Core Points - Traditional IRAs and 401(k) plans allow investment of pre-tax dollars, with tax liabilities deferred until withdrawals are made in retirement [1] - Required Minimum Distributions (RMDs) are mandatory withdrawals from tax-deferred retirement accounts, which must begin at a certain age [2] Summary by Sections RMD Changes - The Secure 2.0 Act increased the age for starting RMDs from 72 to 73 for individuals born on or after January 1, 1951 [4] - The age thresholds for RMDs are as follows: - Before July 1, 1949: 70 1/2 - July 1, 1949, to December 31, 1950: 72 - January 1, 1951, to December 31, 1959: 73 - After December 31, 1959: 75 [5] RMD Compliance - RMDs must be completed by December 31 each year, with the first RMD allowed to be delayed until April 1 of the following year [6] - Failure to withdraw the required amount incurs a penalty of 25% of the amount not withdrawn, although this penalty can be reduced [6]