Planning RMDs for 2023

The Treasury Department issued proposed regulations during 2022 regarding the rules for the new 10-year distribution requirement for inherited retirement accounts. Those rules surprised many, since they required annual distributions to occur for many beneficiaries, even though the beneficiaries are still subject to the new 10-year rule.

Due to the reaction to the proposed regulations, the IRS recently issued Notice 2022-53, which provides relief for certain beneficiaries who are subject to the new 10-year rule and did not receive annual required minimum distributions during 2021 and/or 2022 from the accounts they inherited.

The relief in Notice 2022-53 only applies to the 2021 and 2022 tax years, so beneficiaries who are subject to the new 10-year rule should expect to be subject to the annual distribution requirement for the 2023 tax year.

We will discuss the proposed regulations and Notice 2022-53 and provide practical details and in-depth guidance in our final seminar of the season, this Thursday. If you have not already attended an earlier seminar and are not already registered, register here.