April 18, 2024 - 2024 RMDs Waived for 10-year IRA Payouts

IRA beneficiaries subject to the 10-year payout period are not required to take required minimum distributions in 2024, according to IRS Notice 2024-35. The SECURE Act of 2019 provides that most non-spouse beneficiaries of IRA owners who die after 2019 are subject to a 10-year payment rule with a required beginning date (RBD) that is usually April 1 of the year after the owner turns 73. The IRS required that the annual RMDs be paid in years 1-9 of the 10-year period if the IRA owner died on or after the date the RMDs were required to begin.

The IRS had previously excused annual RMDs for non-spouse beneficiaries of IRA owners who died in 2020 or later for 2021-2023. The agency also excused annual RMDs for 2022 and 2023 for beneficiaries who inherited in 2021 after the owner's RBD and 2023 RMDs for those who inherited in 2022 after the owner's RBD. Notice 2024-35 adds an additional year of relief so taxpayers who inherited after 2019 and subject to the 10-year payout rule won't be required to receive annual RMDs before 2025, but will be required to do so beginning that year.