by Brett Norris, CFP®
Vice President
Wealth Planning
The passage of the SECURE Act in 2019 and SECURE 2.0 Act in 2022 ushered in sweeping changes for taxpayers regarding retirement account distributions. These changes, including a significant modification to how certain designated beneficiaries must distribute inherited retirement accounts, are crucial for anyone possessing or inheriting a retirement account to understand. Under the rules set forth by both Acts, many beneficiaries are required to fully distribute inherited retirement accounts by the end of the tenth year following the original owner’s death, representing a stark change to how those account types have been treated historically. However, the Acts were unclear as to whether the entire balance could be withdrawn at the end of the tenth year or if minimum distributions were required annually throughout the ten-year window.
The IRS issued final regulations on July 19 clarifying the distribution requirements under both Acts, empowering retirement account holders to make better-informed decisions.
Read the NAPA article here.
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