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Some RMD Relief from the SECURE 2.0 Act

The SECURE 2.0 Act, enacted in December 2022, made a number of changes to retirement distributions, including the age for receiving required minimum distributions (RMDs), ultimately creating compliance issues for many taxpayers and plan administrators. As a result, in July the IRS provided some relief,  issuing Notice 2023-54, relating to certain distributions made in 2023 to individuals that technically were not RMDs as a result of the Act.

  • Relief applies to distributions that were made between January 1, 2023, and July 31, 2023 to individuals born in 1951 (or a surviving spouse) that would have been an RMD if not for the SECURE 2.0 Act increasing the age for RMDs from 72 to 73. Affected taxpayers may roll the distributions back into their retirement accounts even if the normal 60-day rollover period has lapsed.
    • Note: the rollover must be completed by September 30, 2023
  • IRS is again delaying the RMD rules applicable to certain inherited IRAs. IRS regulations required distributions over a 10-year period beginning after inheritance. This requirement was to be applicable in 2022 but was delayed to 2023 and is now again delayed to 2024. If applicable, IRS will not assess penalties for failure to receive an RMD under the 10-year rule in 2022 or 2023.

The SECURE 2.0 Act made a number of changes to RMDs and the IRS has begun acknowledging the difficulty implementing these changes is causing. Please contact us if you have any questions about RMDs or other provisions of the SECURE Act.

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