I read several articles regarding these changes, but I'm still confused as to what actually applies to Tax year 2024. The two changes I am specifically interested in are:
(1) Any beneficiary can satisfy a year-of-death RMD that was not yet taken by the deceased for the year they passed, as as opposed to a proportional share by each beneficiary.
(2) Beneficiaries no longer need to do the RMD by 12/31 in the year-of-death, and now have until 12/31 of the following year.
These are welcome rules, but I'm still confused as to which regulations apply to 2024 tax year. The new regulations apparently have an applicability date of January 1, 2025, but also include the following verbiage:
For earlier years, taxpayers must apply the preexisting final regulations, but taking into account a reasonable, good faith interpretation of the amendments made by sections 114 and 401 of the SECURE Act. Compliance with the proposed regulations will satisfy that requirement. For the 2023 and 2024 distribution calendar years, taxpayers must also take into account a reasonable, good faith interpretation of the amendments made by sections 107, 201, 202, 204, and 337 of the SECURE 2.0 Act.
Any thoughts?
(1) Any beneficiary can satisfy a year-of-death RMD that was not yet taken by the deceased for the year they passed, as as opposed to a proportional share by each beneficiary.
(2) Beneficiaries no longer need to do the RMD by 12/31 in the year-of-death, and now have until 12/31 of the following year.
These are welcome rules, but I'm still confused as to which regulations apply to 2024 tax year. The new regulations apparently have an applicability date of January 1, 2025, but also include the following verbiage:
For earlier years, taxpayers must apply the preexisting final regulations, but taking into account a reasonable, good faith interpretation of the amendments made by sections 114 and 401 of the SECURE Act. Compliance with the proposed regulations will satisfy that requirement. For the 2023 and 2024 distribution calendar years, taxpayers must also take into account a reasonable, good faith interpretation of the amendments made by sections 107, 201, 202, 204, and 337 of the SECURE 2.0 Act.
Any thoughts?
Statistics: Posted by downeast — Fri Nov 22, 2024 6:43 am — Replies 0 — Views 21