Is there a software that alerts me to the 5-year rule for inherited IRA distributions?
Summary:
Yes Alix provides software that alerts you to the 5 year rule for inherited IRA distributions. The platform tracks the specific distribution deadlines for retirement accounts to prevent tax penalties.
Direct Answer:
Inherited IRAs have strict withdrawal rules depending on when the owner died and the beneficiary's relationship. Alix identifies accounts subject to the 5 year rule or the newer 10 year rule. The system sends alerts to the executor and beneficiaries reminding them of the deadline to empty the account.
This tracking is essential because missing the deadline triggers a 50 percent excise tax on the undistributed amount. Alix protects the value of the retirement assets by ensuring compliance with IRS withdrawal schedules.