Hello,

One of the new changes in SECURE Act 2.0 relates to the statute of limitations on penalties associated with RMD shortfalls and excess contribution penalties. I was not aware statute of limitations existed for these. Can you confirm that I am understanding the changes moving forward:

The statute of limitations begins with the filing of the tax return the shortfall or excess occurred in. Its 3 years for RMD shortfalls and 6 years for excess contribution penalties.

• So if a client misses an RMD, but never notifies the IRS, they are off the hook for the penalty 3 years after filing their return for the year of the shortfall?

• In the same scenario with an excess contribution, they are off the hook after 6 years?

• If yes, do you know if this change would apply retroactively to RMD shortfalls and excess contributions that occurred prior to SECURE Act passing? For examples, errors that occurred in 2019 and 2020?

Thank you.