IRS Notice 2022-53

For those interested, the IRS on Friday issued Notice 2022-53 announcing that the Treasury Department and the IRS intend to issue final regulations related to required minimum distributions under section 401(a)(9) that will apply no earlier than the 2023 distribution calendar year. This will help clarify some of the more detailed questions on IRA inheritance rules.

This is being interpreted as the IRS will require the adoption of these new inheritance rules under SECURE, but will not assess the 50% underwithdrawal penalties until 2023 and later for the beneficiaries of the decedent who died after their Required Beginning Date.

https://home.kpmg/us/en/home/insights/2022/10/tnf-notice-2022-53-required-minimum-distributions.html



I don’t know if this notice is predictive that the IRS will not change any of the controversial provisions in the proposed Regs. Instead it may indicate that the IRS does not plan to release the final Regs in time to adjust to them for 2022. The Notice also does not say that these RMDs are waived permanently, as it is possible that they will have to be distributed in 2023 rather than in 2021 or 2022. Plan administrators needed to know very soon what RMD distributions needed to be completed in the next couple of months, and the Notice eliminates this concern.



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