WASHINGTON — On July 18, 2024, The Department of the Treasury and the Internal Revenue Service (IRS) released final regulations updating the Required Minimum Distribution (RMD) rules. These changes reflect the updates made by the SECURE Act and the SECURE 2.0 Act, impacting retirement plan participants, IRA owners, and their beneficiaries.
SubscribeKey Points:
- Final Regulations: The new rules generally follow the proposed regulations from 2022, with adjustments based on public feedback.
- Beneficiary Distributions: Despite suggestions to the contrary, beneficiaries of individuals who have begun required annual distributions must continue these distributions. Except for spousal distributions, the account balance must still be fully distributed within 10 years of the individual’s death.
- Proposed Regulations: Alongside the final rules, the Treasury and IRS have issued proposed regulations addressing additional RMD issues under the SECURE 2.0 Act. They are seeking public comments on these proposals.
So far, there have been few surprises because the final regulations so closely mirror the proposed regulations. The TRI-AD team is monitoring the regulations as they are released and will keep you apprised as things unfold.
If you have any questions, please reach out to your TRI-AD team!
TRI-AD and our Associates’ suggestions or recommendations shall not constitute legal advice. No content on our website can be construed as tax or legal advice and TRI-AD may not be considered your legal counsel or tax advisor. Clients are encouraged to consult with their tax advisor and/or attorney to determine their legal rights, responsibilities, and liabilities. This includes the interpretation of any statute or regulation, federal, state, or local; and/or its application to the clients’ business activities.