https://www.forbes.com/sites/ashleaebeling/2022/03/04/irs-nixes-10-year-stretch-for-most-inherited-iras/?sh=2594ee596ac3
Progree's intro:
It used to be that non-spouse beneficiaries had to take RMDs beginning in the year after the account-holder's death, but the annual RMD amounts were based on the life expectancy of the beneficiary. (This is still the case for IRAs and 401k's inherited before 2020 -- they aren't affected by the SECURE act or the proposed rules).
For IRA's and 401k's inherited in 2020 and after:
Then with the 2019 SECURE act, beneficiaries have to withdraw their entire account by the end of 10 years, but there was no required amount specified per year. Just that at the end of year 10, its all gone.
Well, now the Treasury is saying in its PROPOSED rule, is that there is an annual RMD requirement. As well as it must all be cleaned out by the end of year 10. The article doesn't say what the annual RMD is. (10% of the account, maybe?)
Some excerpts from the end of the article:
In March 2021, the IRS revised Publication 590-B (Distributions from IRAs), hinting that it would require annual RMDs to be paid in years 1-9 and the remaining IRA funds to be paid out in year 10. In a revision in May 2021, the IRS made clear that annual RMDs weren’t required under the 10-year rule, after all. Now, with the proposed regs, the IRS has flip-flopped back to its earlier position.
... If you’re a 2020 or later inheritor, IRA expert Denise Appleby says she recommends to wait until close to the end of the year before taking 2021 or 2022 RMDS. By then, the IRS will likely have issued either final RMD regulations, or notices and other guidance that flushes out the rules and state whether there is any blanket reprieve for those who did not take beneficiary RMDs, because IRS Publication 590-B said they did not have to.
Commentors are already chiming in. Some say the IRS is just flat out wrong: “These rules are contrary to the statute, as well as prior final regulations.” ...
... There’s a lot more in the new regulations: a new definition of a minor (age 21 even if your state says age 18) and new rules for IRAs left to trusts. The Treasury Department is accepting comments though May 25, 2022.
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