There are recent updates to rules on Inherited Individual Retirement accounts (IRAs), particularly for non-spouse beneficiaries navigating the latest IRS regulations.

What has changed?
Under the SECURE Act of 2019, most non-spouse beneficiaries must withdraw the full balance of an Inherited IRA within 10 years. Initially, many assumed they could wait until the final year to take distributions.

What does this mean for 2025?
The IRS recently issued Notice 2024-35, providing relief for those who missed RMDs from 2021-2024. Key points:

• This applies to IRA owners who passed away in 2020 or later.

• If you inherited an IRA from someone who had already started RMDs, you were not penalized for missing withdrawals in 2021-2024.

The RMD rule is effective as of January 1, 2025, meaning waivers will not be available for this calendar year.

The SECURE Act withdrawal rule does not apply to:

• Surviving spouses

• Minor children (under 21) of the original account holder

• Individuals with eligible disabilities or chronic illness

• Non-designated beneficiaries (e.g., charities, estates)

• Accounts inherited before 2020

Since these rules are complex and evolving, we would be happy to review your situation and help ensure you’re on track.