December 2020

Updated IRA Forms and Software Needed for 2021

A financial institution wants to use updated IRA forms for at least two reasons. First, you want to provide excellent service to your IRA clients. Secondly, you want to reduce possible liability claims because your old forms mislead your IRA client or IRA beneficiary. The SECURE Act and the CARES Act made major changes in various IRA laws. The RMD age was changed to age 72 from age 70 1/2. Beneficiaries of IRA owners dying in 2020 or subsequent years have changed radically for most beneficiaries. Existing beneficiaries should be informed that upon their death their beneficiary in general will be required to close the inherited IRA under the 10-year rule.

An IRA custodian/trustee should be using updated IRA plan agreements and revised administrative forms. We at CWF have revised the following forms:
1. IRA Amendments

2. IRA Contribution forms

3. IRA distribution forms - new discussion regarding the two new exceptions to the 10% addition tax for a disaster distribution
     or a distribution after a birth or an adoption

4. Election or instruction form for a beneficiary who is not an EDB. This is CWF Form 206 or 206-R

5. Election or instruction form for a beneficiary who is an EDB. This is CWF Form 204 and 204-R

6. Rollover Certification Forms (IRA to person to IRA). Form 65-A

7. Rollover or Direct Rollover Certification Form (401(k) to IRA). Form 65-B

8. Repayment of a Disaster Distribution. Form 65-DI

9. Transferring an Inherited IRA. Form 56-I and 56-RI

10. RMD Notices for 2021