IRS Extends Temporary RMD Relief Under SECURE Actâs 10-Year Rule for 2024
The Internal Revenue Service (IRS) has issued Notice 2024-35, extending temporary relief for required minimum distributions (RMDs) under the Setting Every Community Up for Retirement Enhancement (SECURE) Act's 10-year rule. This relief applies to beneficiaries subject to the 10-year rule in 2024, waiving the excise tax for failure to take RMDs during this period.
This notice follows similar relief provided by the IRS in Notice 2022-53 and Notice 2023-54 for earlier periods. Notably, the relief does not extend to eligible designated beneficiaries utilizing the life expectancy rule. The IRS suggests that the proposed RMD regulations will be finalized soon and will apply for determining RMDs for calendar years beginning on or after January 1, 2025.
In summary, the IRS has granted temporary relief for certain RMDs related to the SECURE Act's 10-year rule through 2024. Beneficiaries subject to this rule should take note and plan accordingly. The final RMD regulations are expected to be released soon.
