Final Regs for RMDs
The Treasury Department recently issued final regulations for required minimum distributions (RMDs) to reflect changes made by both the Setting Every Community Up for Retirement Enhancement (SECURE) Act, enacted in 2019, and the SECURE 2.0 Act, enacted in 2022.
The final regulations are effective in 2025, and they retain the requirement that had been included in the previously proposed regulations that certain beneficiaries who inherit retirement accounts receive annual RMDs for the first 9 years following the death of the original account owner and then withdraw any remaining balance during the 10th year.
As discussed in our May 29, 2024 post, the IRS provided relief from this new rule for the 2024 tax year, which was the same relief that it had previously provided for the 2021 through 2023 tax years. Since the final regulations are effective in 2025, no further relief is expected for tax years after 2024, and beneficiaries will be required to follow the new distribution rules beginning with the 2025 tax year.
Our upcoming seminars in December and January will provide detailed examples and strategies to address the rules contained in the final regulations.
Are you registered for one of our upcoming seminars in December and January? If you are not already registered, register here so you’ll be fully prepared!