Extention of the 10 year rule of Secure 2.0?
Hi
I inherited an IRA in 2022. The first three years of required distributions were waived due to incomplete rules of Secure 2.0. Now I technically have to distribute in 7 years.
- Is there any chance that the 10 year rule will be extended by three years for the “early adopters” of the new Secure 2.0 rule?
- Is there any elected official that I can make my preferences knowwn? Any lobbyist?
Thanks in advance.
HeidiQ.
Permalink Submitted by Alan - IRA critic on Tue, 2025-06-10 16:52
This issue was addressed in the final Secure Act (I)Regs. Secure 2.0 is not applicable to this situation.
The 10 year rule period is not extended by 3 years, and there are no annual RMDs if the IRA owner passed prior to RBD. If owner passed after RBD, annual RMDs must be taken in years 1-9, but the IRS then waived those RMDs for 2021-2024 only due to delay in releasing the final Regs. In 2025 the annual RMDs must begin, but none of this affects the 10 year rule in which the inherited IRA must be drained by the end of 2032.
If you wanted to spread the income out evenly, you could have taken voluntary distributions in 2022-2024 and the income would have been spread over 11 years. But you still have 8 years in which to spread distributions, which would of course result in your exceeding the actual RMD for each year if you wanted to equalize distributions over that period.