IRS Response to Comments on Final Regs
The Treasury/IRS received numerous comments on their 2022 proposed regulations related to distributions from IRAs. Obviously they were not persuaded by the public comments. Does anyone have a link to their response to the public comments? IR-2024-190 states:
“While certain changes were made in response to comments received on the proposed regulations issued in 2022, the final regulations generally follow those proposed regulations.
Specifically, Treasury and IRS reviewed comments suggesting that a beneficiary of an individual who has started required annual distributions should not be required to continue those annual distributions if the remaining account balance is fully distributed within 10 years of the individual’s death as required by the SECURE Act. However, Treasury and IRS determined that the final regulations should retain the provision in the proposed regulations requiring such a beneficiary to continue receiving annual payments.”
Is there any documentation of IRS’s response to the public comments and their justification for RMDs on inherited IRAs for non-EDBs under certain circumstances?
Permalink Submitted by Alan - IRA critic on Fri, 2024-07-26 11:47
I don’t know of any documentation, other than they obviously reviewed most comments, but decided to hold firm with the proposed Regs on this issue.
But at least the final Regs have dropped the proposed deadline for a surviving spouse to assume ownership of an inherited IRA, so there will be no deadline. Also, the deadline to complete the year of death RMD by a beneficiary has been extended from the tax filing due date to the end of the year following the year of death.