IRS Update: Understanding the 10-Year Rule for Inherited IRAs and Qualified Accounts
The Internal Revenue Service (IRS) has provided another update to the rules governing IRAs and qualified accounts. On July 14, 2023, the IRS issued Notice 2023-54 that announced the following:
- Final Regulations will apply to distributions starting in the calendar year 2024.
- Missed RMDs from Inherited qualified accounts and IRAs are forgiven and not subject to excise tax if the original owner died after RBD in years 2020, 2021, and 2022 and the beneficiary has 10 years to distribute the qualified account.