The IRS has issued final regulations (TD 1001) and proposed regulations (REG-103529-23) relating to Required Minimum Distributions from traditional and Roth qualified retirement plans, including Section 401(k) plans, and IRAs.

The regulations explain the rules for required minimum distributions under the SECURE Act of 2019 and SECURE 2.0 Act of 2022.

The final regulations are mostly the same as previously-issued proposed regulations with some minor changes in response to comments received by the IRS.

Notably, the final regulations didn’t change a controversial rule in previously-issued proposed regulations requiring that distributions be made annually when the plan participant dies after the required beginning date and annual required minimum distributions already applied during their lifetime. (This rule doesn’t apply to Roth account participants, because there is no required beginning date during their lifetimes.)

In most cases, that means when a plan participant dies after the required beginning date and annual required minimum distributions already applied during their lifetime, life expectancy distributions continue for the next nine years and the balance of the account is distributed during the tenth year after death. See your tax advisor for exceptions for “eligible designated beneficiaries” (including the surviving spouse) and non-designated beneficiaries.

See your tax advisor about how the new regulations apply for you and your family.