THE EFFECTS OF REQUIRED MINIMUM DISTRIBUTION RULES ON WITHDRAWALS FROM TRADITIONAL IRAs

THE EFFECTS OF REQUIRED MINIMUM DISTRIBUTION RULES ON WITHDRAWALS FROM TRADITIONAL IRAs

We study the effects of required minimum distribution (RMD) rules on the asset decumulation behavior of retirees with traditional individual retirement arrangements (IRAs). Using a nationally representative panel of 1.8 million IRA holders from 2000 to 2013, we estimate that around 50 percent of ind...

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Veröffentlicht in:National tax journal 2019-09, Vol.72 (3), p.507-542
Hauptverfasser: Mortenson, Jacob A., Schramm, Heidi R., Whitten, Andrew
Format: Artikel
Sprache:eng
Schlagworte:
Behavior
Distribution
Distribution of retirement plan assets
Fiscal policy
Impact analysis
Income distribution
Income tax
Individual retirement accounts
IRA
Laws, regulations and rules
Management
Retirees
Retirement
Studies
Suspension
Taxation
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Zusammenfassung:We study the effects of required minimum distribution (RMD) rules on the asset decumulation behavior of retirees with traditional individual retirement arrangements (IRAs). Using a nationally representative panel of 1.8 million IRA holders from 2000 to 2013, we estimate that around 50 percent of individuals would prefer to withdraw less than their required minimum. However, we also estimate that up to 38 percent of these RMD-constrained individuals did not respond to a temporary suspension of RMD rules in 2009.
ISSN:0028-0283
1944-7477
DOI:10.17310/ntj.2019.3.02