Close Menu
Real Estate Smart ChoiceReal Estate Smart Choice
  • News
  • Investing
    • Buying
    • Selling
  • Financing
    • Mortgage Calculator
  • Guides
  • Homeowners
    • Home Improvement
    • Property Management

LATEST

Seven Steps to Buying a Rental Property in Today’s Market
June 13, 20257 Mins Read
What Are the Best Asset Classes for Active Management?
June 13, 20253 Mins Read
Bird Dog Bot
Facebook X (Twitter) Pinterest LinkedIn
Real Estate Smart ChoiceReal Estate Smart Choice
  • News
  • Investing
    • Buying
    • Selling
  • Financing
    • Mortgage Calculator
  • Guides
  • Homeowners
    • Home Improvement
    • Property Management
Real Estate Smart ChoiceReal Estate Smart Choice
Home » Real Estate » News » IRS Issues New Notice on Inherited IRAs
News Real Estate

IRS Issues New Notice on Inherited IRAs

April 18, 20243 Mins Read
IRS building
Facebook Twitter LinkedIn Pinterest Email Copy Link


The Internal Revenue Service recently issued Notice 2024-35, waiving any excise tax for failure to take required minimum distributions for 2024 for certain inherited retirement accounts subject to the 10-year rule in light of the delay in issuing final regulations under the Setting Every Community Up for Retirement Enhancement (SECURE) Act.

Recall that the proposed regulations had surprised practitioners in stating that if the retirement account owner dies after their required beginning date and the beneficiary is subject to the 10-year rule, they still have to take RMDs in Year 1 to Year 9 based on their life expectancy (or possibly the oldest trust beneficiary’s life expectancy if it’s an accumulation trust that is beneficiary). This variation of the 10-year rule can also apply in situations when a designated beneficiary or eligible designated beneficiary who was taking RMDs over their life expectancy died in 2020-2023 (for example, an IRA owner died in 2013 pre-SECURE, leaving an IRA to a child, who then dies in 2022 or an IRA owner dies in 2022 post-SECURE leaving an IRA to an EDB who starts taking over their life expectancy and then dies in 2023 – both situations start new 10-year rule).

Related: IRS Issues its 2025 Revenue Proposals

The Notice states that final regulations will be issued and take effect on Jan 1, 2025. This Notice follows similar IRS Notices issued in prior years after the proposed regulations were issued in 2022 on the same issue.

The Notice doesn’t say there’s no RMD; it just says that the IRS is waiving any penalty for failure to take it.  So, if you’re a trustee of a trust that’s a beneficiary and the instrument tells you to take the RMD, you may still want to take it, particularly if there’s a beneficiary whose distributions would be adversely affected by a failure to take one (for example, a conduit trust or qualified terminable interest property trust).   It might be prudent for beneficiaries to take distributions to spread out income for financial reasons, even if they can avoid penalties for failure to take one.  

Related: IRS Issues Proposed Regs that Crack Down on Abusive CRAT Strategy

This Notice has no application to situations in which owners die before their required beginning date.  This includes Roth IRAs that have no RBD while the owner is living, and therefore, owners are always deemed to die before their RBD.  In such cases, there are no RMDs for beneficiaries subject to the 10-year rule until the 10th year.

view original post on www.wealthmanagement.com

Share. Facebook Twitter Pinterest LinkedIn Email Copy Link
Previous ArticleWeeklong BoomTown Outage Was Caused By Hackers, CEO Confirms
Next Article Nimble Powers Up Prospecting With PhoneBurner

Related Articles

Seven Steps to Buying a Rental Property in Today’s Market

June 13, 20257 Mins Read
Read More

What Are the Best Asset Classes for Active Management?

June 13, 20253 Mins Read
Read More

Why RIA Buyers Prioritize Firms with Engaged G2 Leadership

June 13, 20255 Mins Read
Read More
LATEST

Seven Steps to Buying a Rental Property in Today’s Market

June 13, 20257 Mins Read

What Are the Best Asset Classes for Active Management?

June 13, 20253 Mins Read

Why RIA Buyers Prioritize Firms with Engaged G2 Leadership

June 13, 20255 Mins Read

RBC Wealth Management Attracts $1.1 Billion in Assets from UBS Advisors

June 13, 20252 Mins Read
POPULAR
Investing Real Estate

Seven Steps to Buying a Rental Property in Today’s Market

June 13, 20257 Mins Read

15% ROI, 5% down loans!”,”body”:”3.99% rate, 5% down! Access the BEST deals in the US at below market prices! Txt REI to 33777 “,”linkURL”:”https://landing.renttoretirement.com/og-turnkey-rental?hsCtaTracking=f847ff5e-b836-4174-9e8c-7a6847f5a3e6%7C64f0df50-1672-4036-be7b-340131b43ea4″,”linkTitle”:”Contact Us Today!”,”id”:”65a6b25c5d4b6″,”impressionCount”:”1340275″,”dailyImpressionCount”:”1171″,”impressionLimit”:”1500000″,”dailyImpressionLimit”:”8476″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/01/720×90.jpg”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/01/300×250.jpg”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/01/300×600.jpg”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/01/320×50.jpg”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”Center Street Lending”,”description”:”2″,”imageURL”:null,”imageAlt”:null,”title”:”2″,”body”:”2″,”linkURL”:”https://centerstreetlending.com/bp/”,”linkTitle”:””,”id”:”664ce210d4154″,”impressionCount”:”581019″,”dailyImpressionCount”:”698″,”impressionLimit”:”600000″,”dailyImpressionLimit”:”2655″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_720x90-1.png”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_300x250-2.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_300x600-2.png”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/CSL_Blog-Ad_320x50.png”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”BiggerPockets Lender Finder”,”description”:”2″,”imageURL”:null,”imageAlt”:null,”title”:”2″,”body”:”2″,”linkURL”:”https://www.biggerpockets.com/business/finder/lenders”,”linkTitle”:”Find…

Read More

What Are the Best Asset Classes for Active Management?

June 13, 20253 Mins Read

Why RIA Buyers Prioritize Firms with Engaged G2 Leadership

June 13, 20255 Mins Read

RBC Wealth Management Attracts $1.1 Billion in Assets from UBS Advisors

June 13, 20252 Mins Read
About Us

We are your premier destination for real estate news, investment insights, and invaluable industry information. Our commitment is to provide you with accurate, timely, and comprehensive content that empowers you to make informed decisions in today's ever-evolving real estate landscape. Trust us to be your guide in navigating the intricacies of real estate investment and beyond!

Home Designs AI

LATEST

What Are the Best Asset Classes for Active Management?

June 13, 20253 Mins Read

Why RIA Buyers Prioritize Firms with Engaged G2 Leadership

June 13, 20255 Mins Read
Real Estate Smart Choice
Facebook X (Twitter) LinkedIn Pinterest
  • Home
  • News
  • Investing
  • Financing
  • Guides
  • Mortgage Calculator
  • Contact Us
© 2025 by Real Estate Smart Choice

Type above and press Enter to search. Press Esc to cancel.