January 1, 2023
SECURE Act Proposed Regulations – Two Eligible Designated Beneficiary Surprises
Take-Away: Previously covered in the past has been the IRS’s unique interpretation of the at least as rapidly rule when it comes to distributions from an inherited IRA when the IRA owner was over their required beginning date (RBD) at the time of their death. A couple of other ‘surprise’ interpretations also appear in those SECURE Act Proposed Regulations with regard to a designated beneficiary who is not more than 10 years younger than the deceased account owner. Again, they create a risk that a beneficiary will fail to take their full required minimum distribution (RMD) leading to a 50% excise tax imposed on the amount that should have been taken from the inherited IRA.
Read More