The Setting Every Community Up for Retirement Enhancement Act of 2019 (more commonly known as the SECURE Act) altered the landscape for IRAs significantly. In early 2022, just when advisors gained a comfort level with the SECURE Act, the U.S. Treasury Department issued Regulations requiring required minimum distributions (“RMDs”) under the 10-year Rule in years 1-9. Then, after realizing that many individuals were unaware of the new requirements, the I.R.S. issued Notice 2022-53 suspending the requirement to take RMDS in 2021 and 2022.
At the end of 2022, SECURE 2.0 came in with some welcome changes, while adding unnecessary complexity to our retirement world. In short, SECURE 2.0 increased the age at which certain individuals needed to begin taking RMDs. Specifically, individuals born in 1951 found themselves in an unusual situation. For some, distributions that were intended to be RMDs in 2023 were not actually RMDs. This is so because SECURE 2.0 delayed their required beginning date (“RBD”) to take RMDs. In other words, what they meant to be a distribution from the IRA that was not an RMD, and the usual 60-day roll over deadline had already expired. The IRS issued Notice 2023-54 in response. Read on to learn more.
The terms of the SECURE Act may impact estate plans created prior to its enactment. Contact us to schedule an appointment today to discuss updating your plan.
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