Secure Act RMD vs 2.0
I just ran into a case where the father(90) passed in June of 2020. They CPA at the time instructed the bene(daughter) that no RMD would be required under the “new” 10 rule. I remember something about that during that time, but obviously now, if the owner reached RBD, RMD is required. The daughter has not been taking any RMD and is just now asking if she should have been.
So, was there a window pre 2.0 where that was true and would it apply to this case? Or, is the daughter 3 years behind on RMDs? Assuming they took year of death RMD, if not, then 4 years behind.
Permalink Submitted by Alan - IRA critic on Wed, 2024-04-03 03:06
The IRS has still not finalized the proposed Secure Act Regs, and therefore have waived the penalty for annual RMDs under the 10 year rule. Following is the latest waiver Notice for 2023 RMDs, same as for 2021 and 2022. There was also no year of death RMD since 2020 RMDs were totally waived by the CARES Act. Therefore, daughter is not delinquent through 2023, but the 2024 status is still not determined by the IRS. Apparently, if they cannot issue final Regs by early fall, they will have to yet again waive the 2024 beneficiary RMD. That said, it may not be wise for the daughter not to take some distributions to prevent a large taxable distribution at the end of the 10 year period.
N-2023-54 (irs.gov)