IRS to Fix Inherited IRA Guidance That Confused Advisors
May 3, 2021 by Roger Wohlner
What You Need to Know:
- The Secure Act changed the inherited IRA rules for most non-spousal beneficiaries.
- A recent IRS publication created confusion around whether RMDs are required for those beneficiaries covered by the 10-year rule.
- An example presented by the IRS seemed to show that distributions needed to be taken every year. That’s not the case.
The Setting Every Community Up for Retirement Enhancement (Secure) Act contained a number of changes affecting retirement accounts.
One of the most significant sets of changes are those the act made to the inherited IRA rules for many non-spousal beneficiaries. In particular, the rules require an inherited IRA to be emptied in 10 years.