News | 08.01.22
IRS Changes Guidelines for Inherited IRAs, Causing Confusion and Pushback
Rules on inherited individual retirement accounts (IRAs) were most recently changed in the 2019 Secure Act, which introduced a new 10-year payout rule for inherited accounts. Many tax professionals interpreted the new 10-year rule to mean that these heirs could wait until the 10th year before taking any payouts, and that is what the Internal Revenue Service (IRS) said in a May 2021 revision to Publication 590-B. But then, in February, the IRS issued new guidance that would require heirs to take annual withdrawals in cases where the original owner died on or after his required beginning date for taking distributions.
Read the full article on Wall Street Journal