If the final regulations, or other IRS guidance, is more restrictive than the provisions in the 2001 proposed regulations, such guidance will be issued without retroactive effect. Qualified plans, TDAs and IRAs will eventually have to be amended to incorporate the final regulations, after they are issued. It is not advisable to make amendments at this time based on the 2001 proposed regulations. Those persons who have reached the RBD should determine whether they could reduce their required distributions for 2001 by taking advantage of the 2001 proposed regulations. In addition, these persons should re-evaluate their estate plans, particularly as to the naming of a beneficiary.
Greater flexibility is now possible in connection with naming a trust as beneficiary.
Individuals who have not reached the RDB should also consider the effect of the 2001 proposed regulations on their tax and estate planning. It is intended to be informational and does not constitute legal advice regarding any specific situation.