Using the estate tax that is attributable to the Retirement Plan, the program first calculates the value of the Section 691(c) Deduction. By applying the Front Loaded method, the program subtracts each distribution that the heir makes from the calculated Section 691(c) Deduction until the deduction is entirely consumed. These distributions are essentially tax-free. Once the Section 691(c) Deduction is used, the distributions start generating income tax.
