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1. Exemption from Penalties
Beneficiaries who did not take their required annual RMDs for the years 2021, 2022, 2023, or 2024 will not face penalties for failing to meet these requirements. This applies specifically to designated beneficiaries who inherited accounts from individuals who died on or after their required beginning date (RBD). more
2. Eligibility Criteria
The relief applies to:
- Designated beneficiaries who did not take an annual RMD following the death of the account owner in 2021, 2022, 2023, or 2024.
- Minor children who were eligible designated beneficiaries (EDBs) and did not take an annual RMD upon reaching age 21 during the specified years.
- Beneficiaries of an EDB who did not take an annual RMD following the EDB's death in the same timeframe.
3. Continuation of Life Expectancy Payments
If the account owner had begun taking RMDs before their death, beneficiaries are required to take annual distributions over the 10-year period following the owner's death. However, the transitional relief allows for flexibility in meeting these requirements without penalties for specified years. more
4. Historical Context
This relief builds on previous notices (2022-53 and 2023-54) that provided similar exemptions for RMDs due in earlier years, ensuring that beneficiaries are not penalized for missed distributions during this transitional period. more