IRS Updates to RMDs

[Aitrus]

I came across an article this morning that made me realize that there's been a number of changes to the RMD rules this year. It won't affect me for a while yet - I'm 43 - and it's not a section of retirement planning I keep up on as much as I should, so it caught me a bit by surprise. Posting here so that anybody who is affected can get up to speed.

https://www.fedsmith.com/2023/07/27/rmd-update-again/

It seems that the SECURE Act made some changes to inherited accounts, and the IRS issued some new rules on RMDs.

SECURE Act changes: https://www.fedsmith.com/2023/01/18/sec ... d-to-know/

New IRS Rules: https://www.fedsmith.com/2023/02/17/mas ... d-to-know/

Because of the confusion in these new rules, the IRS has issued an updated rule for 2023 (namely, a waiver), which is what the first article above is about. Apparently...

"Previous guidelines suggested that if the decedent had already begun RMDs prior to death, the beneficiary would have to continue distributions as if the decedent were still alive. Many people were getting this wrong, incorrectly assuming they just needed to have the account fully distributed by the 10th year of having inherited it. In response, the IRS released notice 2023-54 stating that due to the continued confusion, they would waive the requirement for this year."

[evilanne]

So if I die prior to 75, my beneficiaries have 10 years to withdraw the money but if I reach 75 or later it is reduced to 5 years?? I'm confused, not sure if I'm reading this right

https://www.irs.gov/pub/irs-drop/n-23-54.pdf

[Bubba]

Thanks for keeping us apprised. I'm also in my 40s, but I'm watching this stuff like a hawk. Any further updates are appreciated.