Insights
In November 2024, Davis & Harman attorneys Alison Peak, Adam McMahon, and Grace Sullivan published an article in Taxing Times focusing on the Treasury Department’s and
Internal Revenue Service’s (IRS) final and proposed regulations interpreting the required minimum distribution (RMD) modifications made by SECURE 1.0 and SECURE 2.0.
On July 19, 2024, the Treasury Department and IRS published final regulations on RMDs from retirement plans and IRAs. The Final Regulations had been hotly anticipated since proposed regulations were released in February 2022, which were intended to reflect changes made to the RMD rules by SECURE 1.0. Also included in the July 19th regulatory package was a new set of proposed RMD regulations intended to further update the RMD regulations to include additional changes made to the RMD rules by the SECURE 2.0 Act of 2022.
In the article, we focus on the most important rules in the Final and Proposed Regulations that practitioners should know as the effective date for the Final Regulations draws near. We begin by briefly reviewing the longstanding RMD rules and how they have been impacted by SECURE 1.0 and SECURE 2.0. Next, we demystify the Final Regulations by providing a basic framework for determining how the rules apply to different beneficiaries, including special circumstances involving spousal beneficiaries. We then analyze the key ways in which the Final Regulations differ from the 2022 proposal. And finally, we summarize the SECURE 2.0 provisions that are the focus of the Proposed Regulations and how they were addressed by the regulatory package released in July.
A link to the full article can be found here
