RMDs: Inherited IRAs -- IRS Update -- July 27, 2023

Locator: 45224RET.  

Link here.

The Internal Revenue Service on Friday said it would continue to delay enforcing new rules related to inherited retirement accounts, enabling some inheritors to forgo taking a required distribution for 2023.

The confusion for inherited IRA owners comes after Congress changed the rules for inherited retirement accounts in 2019. From then on, most taxpayers other than spouses who inherit accounts had to empty the funds within 10 years, not over their lifetimes, as was previously allowed.

The upshot is that some inheritors subject to the new 10-year payout window don’t have to take required minimum distributions for 2023.