Proposed IRS regs on RMDs in April newsletter
The April Ed Slott newsletter addressed the proposed regs for RMDs. But if the information on the effective date is in the newsletter, I missed it. What is the date that these proposed regs will take effect?
Thanks
Permalink Submitted by Alan - IRA critic on Fri, 2022-04-22 22:54
The proposed Regs are to be effective 1/1/2022, but since the entire package is proposed at this point, it could become final with a different effective date or different dates for different provisions. If the Reg does not go final until very late in the year, certain waivers may have to be granted with the final document.
Permalink Submitted by Brad King on Mon, 2022-04-25 15:18
thank you
Permalink Submitted by William Marton on Tue, 2022-04-26 18:58
The IRS will also have to figure out how to handle those beneficiaries who were following the previous interpretation of the 10-year rule and delaying RMDs until later in the 10-year period. For example, will non-eligible designated beneficiaries who inherited a traditional IRA in 2020 be required to take missed RMDs, or will the RMDs only be required going forward. And if RMDs are only required going forward, will they use the current methodology for calculating them or change it it to take into account that distributions were previously missed? There is still a lot for the IRS to work out. Of couse, they could make everyone’s life simpler by sticking with the previous interpretation of the 10-year rule.
Permalink Submitted by Alan - IRA critic on Tue, 2022-04-26 21:28
Yes, the IRS itself is struggling with the regulations being proposed, and they are wallowing in the added complexity created by Congress and themselves. Since non spouse beneficiary RMDs have received minimal oversight in the last two decades, you wouldn’t think that doubling the complexity of these rules would be beneficial.