IRS Releases Final Regulations on Post-SECURE Act RMDs for Inherited Accounts

The IRS has now finalized proposed regulations released in 2022 on required minimum distribution requirements for inherited retirement accounts.  The final regulations track those proposed regulations closely.  Under the proposed regulations, the IRS surprised many by ruling that annual RMDs for inherited accounts will be required if the original owner had already begun their own RMDs--the final regulations did not change this rule.  The final rules are effective beginning in 2025, alleviating concerns about retroactive applicability.  The IRS will not impose penalties for taxpayers who skipped RMDs in 2021, 2022, 2023 and 2024.  The IRS also simultaneously released proposed regulations confirming that, for taxpayers who are born in 1959, the applicable required beginning date is age 73.  For more information on the post-SECURE Act RMD rules for inherited accounts, visit Tax Facts Online. Read More: Link to Q3691.  Note: Q is updated.