Can You Skip Your RMD in 2024?
April 30, 2024
If you are the beneficiary of an IRA inherited after 2019, the IRS has recently extended penalty relief for unsatisfied 2024 RMDs. This means the penalty for not taking all of your RMD from your inherited IRA in 2024 is zero.
In 2022, the IRS issued a surprising take on inherited IRA RMDs, indicating that in most cases where the 10-year rule applies, the beneficiary had to take an RMD every year following the owner’s death, plus take the full balance by the end of the 10-year period. Failure to take an RMD in years 1-9 would be subject to a penalty. After receiving feedback and understanding taxpayer confusion, the IRS provided penalty relief for RMDs not taken in 2021 and 2022. The IRS extended this penalty relief for 2023 RMDs (Notice 2023-54). Two days ago, the IRS issued yet another notice (Notice 2024-35) stating that they now intend to issue the finalized regulations in 2025 and penalty relief has been extended to apply to 2024 RMDs.
Washington Trust Wealth Management Can Help
Your wealth advisors at Washington Trust Wealth Management can help you take advantage of the IRS' additional extension of the penalty waiver, tailoring the timing and amount of your inherited IRA RMDs to your unique financial situation and goals.
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No matter where you are in life, we can help. Get started with one of our experts today. Contact us at 800-582-1076 or submit an online form.
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