The IRS has announced a one-year delay (generally from the 2025 distribution calendar year to 2026) for the earliest potential effective date for certain proposed rules regarding the required minimum distribution (RMD) requirements. The RMD requirements affect the timing for participants and beneficiaries to receive distributions from tax-deferred retirement accounts each year to avoid tax penalties.
In July 2024, the IRS issued:
The delay only applies to the proposed effective date of certain provisions included in the 2024 Proposed Rule and does not affect any of the requirements in the Final Rule.
The delay in the proposed effective date affects the following provisions of the 2024 Proposed Rule:
Since the proposed effective date of the 2024 Proposed Rule is contingent on this rule becoming final, it is possible that the deadline could be further delayed beyond the 2026 distribution calendar year. In the interim, plan sponsors must follow a reasonable, good faith interpretation of the statute.