Reminder: Annual Distributions Required for Most Inherited Retirement Account Beneficiaries in 2023

Taxpayers who have recently inherited retirement accounts may be wondering whether they are required to take distributions each year. As of now, the IRS has released proposed regulations stating that annual distributions are required, at least for beneficiaries who are not characterized as eligible designated beneficiaries. These annual distributions are required if the original account owner died after his or her required beginning date. While it is possible that the IRS could change this rule in final regulations, that action is far from clear. As such, most beneficiaries who inherit accounts in 2023 should plan to take an annual required minimum distribution from the account before the end of the year. For more information on the rules governing required minimum distributions from inherited IRAs when the original account owner has already started taking distributions, visit Tax Facts Online. : Q 3689.