The Treasury Department and the Internal Revenue Service (IRS) have issued final regulations relating to the 10-year required minimum distribution (RMD) rule for people who inherit individual retirement account (IRA) assets.
The newly published guidelines generally reflect what the IRS proposed in 2022, but they bring clarity to several key questions about the rule, which mandates that certain retirement account beneficiaries fully distribute those accounts within a decade of the original account holder’s death.
Regulators have confirmed that most beneficiaries must continue to take RMDs annually throughout the 10 years and fully withdraw the account by the end of the 10th year. As with any tax law change, however, there are exceptions and nuances to the rules that can cause confusion.
Read more about this rule and what you need to know.