IRS Issues Surprising Guidance on IRA RMD’s

Josh Caron
Finseca VP Legislative Affairs

On March 25th, the IRS issued Publication 590, an annual release of the tax rules on withdrawing funds from individual retirement accounts. Contained in the publication is guidance that has been interpreted to state that eligible beneficiaries who inherited an IRA after SECURE went into effect would be required to take a minimum distribution based on certain variables in years 1-9, instead of just empty the account before year 10 or face the 50% excise tax.

This guidance constitutes a significant development for clients in this situation. It is also a reversal from the consensus conclusion about what was intended by the language included in the SECURE Act of 2019. Finseca is conferring with industry partners and will follow-up with additional guidance. If you have questions, please contact Josh Caron.

Want to learn more? This article discusses the guidance in greater detail and IRS guidelines are here.