Keep in mind that this is a minimum calculation, and electing to receive a larger amount is still permissible. For purposes of calculating the required minimum distribution, a beneficiary does not have to be named by the required beginning date for distributions. Also, changing the beneficiary no longer impacts the distribution calculation. Under the old rules, changing the beneficiary could impact the calculation of the minimum required distribution because different rules applied for different groups of beneficiaries. Now, using the uniform table, the same rules apply regardless of the choice of beneficiary.
Irrevocable elections regarding recalculation or one-year reduction are no longer necessary.
Those already receiving distributions can disregard the election they have made previously. The previous rules required an irrevocable election at the beginning of distributions, where the account owner chose either annual recalculation or one-year reduction for calculation of the required minimum distribution. The new rules do not require any such election going forward, and also nullify the election made previously. This assists those who made an inappropriate selection in the past. Non-spouse beneficiaries can receive distributions from an inherited IRA gradually over the beneficiary's life expectancy, rather than receiving all of the money within five years of the account owner's death or at the same rate the account owner was receiving distributions.