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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Five-Year Rule  

Definition 1.

If a retirement account owner dies before the required beginning date, the beneficiary may distribute the inherited assets over his/her (the beneficiary’s) life expectancy or distribute the assets under the five-year rule. Under the five-year rule, the assets must be distributed by December 31 of the 5th year following the year the retirement account owner died.
 
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