After the SECURE 2.0 Act’s new rules resulted in confusion, the IRS issues notice providing relief on required minimum distributions.
Once again, due to ongoing confusion about required minimum distributions, the IRS has found it necessary to give limited relief to both IRA owners and beneficiaries. The relief was contained in Notice 2023-54, issued Friday.
RELIEF FOR IRA OWNERS
The SECURE 2.0 Act raised the RMD age from 72, set by the original SECURE Act, to 73 for those who turn 72 this year or later (those born in 1951 or later).
The problem was that SECURE 2.0 was signed into law so late in the year that some IRA owners weren’t aware of the change and took their RMDs early this year, when it turns out they didn’t have to. Without relief, they would owe tax on those distributions. Adding to the problem was that some financial institutions had already sent out letters mistakenly saying that RMDs were owed. Learn more