The IRS has just waived required minimum distributions (RMDs) for some IRA beneficiaries under the 10-year rule. What this means: the IRS won’t penalize those beneficiaries for failing to take required minimum distributions this year.

But, this doesn’t affect:

• Lifetime RMDs. The waiver is only for beneficiaries of IRAs.
• Eligible designated beneficiaries. The 10-year rule does not apply here.
• Beneficiaries who inherited before 2020. They follow pre-SECURE Act rules.

This is the fourth year in a row that the IRS has waived required minimum distributions for IRA beneficiaries subject to annual required minimum distributions within 10 years. The current rules are confusing and the IRS knows it.

Not sure if this applies to you? Reach out to your wealth manager and your accountant. They will tell you.

Contact us if you need a referral to a smart wealth manager or accountant for more advice.

This post was created by Jessica Marchegiano, founder of JM LAW, PLLC, and senior estate planning attorney.