New Reporting Requirements for IRA Trustees/Custodians
In the past, IRA owners were left to their own devices to figure out the minimum required distributions they had to take. Banks, investment companies, insurers, and other IRA providers were under no obligation to provide the owner with information about the RMD amount.

No more. Due to the simplified method now available for determining the required minimum distribution, the IRS will require IRA trustees and custodians either to report the amount of the RMD for the current year to the IRA owner or offer to calculate the RMD amount and provide it to the owner upon request. This reporting will be required for each IRA regardless of whether the IRA owner is planning to take the RMD from that IRA or from another IRA. The reporting requirement is effective beginning with 2003 RMDs.

In addition, the IRS will have to be notified that minimum distributions are required, beginning with RMDs for 2004.

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