New Beneficiary IRA Rule Enforcement
Is there a known process yet for how the IRS intends to enforce the 10 year deadline on paying out beneficiary IRAs? it seems like it could become a big problem for the industry with advisors not identifying which timeframe the beneficiary IRAs falls under. The custodians have already said they aren’t doing anything they just report withdrawals.
Permalink Submitted by Alan - IRA critic on Thu, 2021-11-11 16:45
Have not heard anything on this, but given that the IRS and the IRA custodian industry has done little or no enforcement in the past, I doubt if the IRS has developed a plan. In fact, the 10 year rule might be treated as a 10 yaer break from this issue by the IRS. My guess is that the IRS will depend on custodian communication for basic enforcement of the Secure Act provisions. This could include more info gathering on beneficiaries such as DOB.