IRS released Notice 2022-53 – Inherited IRA Distribution Rules for Non-Spouse beneficiaries

The passing of the 2019 Secure Act changed the rules starting January 1, 2020, as to when non-spouse beneficiaries must begin taking money from inherited retirement accounts.  Instead of stretching withdrawals over their lifetime, most non-spouse beneficiaries inheriting IRAs, with few exceptions, are now subject to a “10 year rule”, which requires that these beneficiaries have to have the entire balance of the IRA distributed to them in 10 years.

On October 7th, 2022, the IRS released Notice 2022-53 announcing that final regulations are forthcoming and will apply, at the earliest, to the 2023 distribution year.  The IRS has indicated that individuals affected by the new rules who failed to take RMDs in 2021 and 2022 will not be subject to the ordinary penalties.   While the changes have not been officially announced, based upon this notice, it seems likely to pass. 

Questions? Contact Rebecca at 563.388.2575.