99.999% is a pretty high percentage. I am trying to match that prediction up with the wording in a draft of form 590-B for the tax year 2022, published 12/9/22, linked here: https://www.irs.gov/pub/irs-dft/p590b--dft.pdf
The first 2 paragraphs on page 10 state:
"10-year rule. The 10-year rule requires the IRA beneficiaries who are not taking life expectancy payments to withdraw the entire balance of the IRA by December 31 of the year containing the 10th anniversary of the owner’s death. For example, if the owner died in 2022, the beneficiary would have to fully distribute the IRA by December 31, 2032. The beneficiary is allowed, but not required, to take distributions prior to that date.
The 10-year rule applies if (1) the beneficiary is an eligible designated beneficiary who elects the 10-year rule, if the owner died before reaching his or her required beginning date; or (2) the beneficiary is a designated beneficiary who is not an eligible designated beneficiary, regardless of whether the owner died before reaching his or her required beginning date. "
But then the example at the bottom of that page 10 seems to contradict the above paragraph. What kind of percentage do we put on those paragraphs being in the final version of form 590-B?
I'm worried that TurboTax software will not encompass the exceptions to fines that are in the complicated wording of that pdf file, which to me looks less official than a 590-B draft, and was certainly published before the 590-B draft.
