The Internal Revenue Service (IRS) and the Department of the Treasury announced on Wednesday that several aspects of the required minimum distribution (RMD) rules will not apply until 2026. The Treasury Department and the IRS had initially published proposed regulations on RMDs on February 24, 2022, following changes made in the SECURE Act of 2019. After the SECURE 2.0 Act was passed in late 2022, both agencies reviewed public comments on the proposed regulations and aligned them with SECURE 2.0 provisions.
Some changes were integrated into the final regulations, while others will be addressed in new proposals.
Irs delays required distribution rules
On July 19, 2024, the Treasury Department and the IRS published final regulations regarding RMDs under section 401(a)(9) and related provisions and also issued new proposed regulations.
During a public hearing held on September 25, many commenters expressed concerns about implementing several provisions of the future final regulations before January 1, 2025. In response, the IRS and the Treasury Department decided that the new provisions will apply starting in the 2026 distribution calendar year. Until then, taxpayers are advised to follow a reasonable, good-faith interpretation of the statutory provisions underlying the amendments.
More information on Announcement 2025-02 can be found through the IRS and Treasury Department’s official channels.
