IRS Finalizes RMD Regulations: Key Takeaways and the 10-Year Rule for Beneficiaries
The IRS issued its highly anticipated final regulations for required minimum distributions on July 19, 2024. These regulations incorporate rules from both the Secure and Secure 2.0 acts. With these final regulations, the IRS answers many burning questions, including whether designated beneficiaries must take RMDs on an annual basis.
Proposed regulations were also issued for the Secure 2.0 Act.
Essential Reminders for Understanding the Finalized RMD Regulations
Roth accounts: Owners of Roth accounts are not subject to RMDs. That has always been the case for Roth IRAs. For designated Roth accounts, or DRAs, which are Roth 401(k), Roth 403(b), and Roth 457(b) accounts, that rule became effective for years after 2023.
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