August 21, 2024
Since the SECURE Act was passed in 2019, it has been clear that those who inherited IRAs after 2020 needed to draw them down within 10 years, what hadn’t been finalized was whether annual RMDs were required.
On July 18, 2024, the IRS released final regulations confirming the requirement for Non-Designated Beneficiaries of IRAs to take RMDs annually if the previous owner began taking RMDs before they passed away. At the same time, the IRS also confirmed those who should have taken RMDs between 2021 and 2024 but didn’t, will not be subject to penalties nor will they be required to make up the missed distributions.
So effectively, the new regulations begin the RMDs requirement starting in 2025 based on the beneficiaries' life expectancy subject to full withdrawal by the 10th year after becoming the beneficiary. Your Investment Counselor can assist with calculating your required annual distribution and provide withdrawal strategies during the 10-year window.
Download Article: Finalized Inherited IRA Regulations
The above information is for educational purposes and should not be considered a recommendation or investment advice. Investing in securities can result in loss of capital. Past performance is no guarantee of future performance.
