Notice 2024-35: Relief With Respect to Certain RMDs

On April 16, the IRS issued Notice 2024-35 regarding inherited Required Minimum Distributions (RMDs), providing relief with respect to certain RMDs.

Section IV defines “specified RMDs” for beneficiaries of those who passed away between 2020 and 2023. Essentially, if you inherited an IRA during this time and fall under the 10-year rule, you’re given another year without penalties if you didn’t take any distributions in 2024.

Though it’s wise to spread out distributions over the 10 years to avoid high taxes, there’s no requirement for distributions this year. We’ll have to wait until next year for more definitive regulations.

For more information, contact your wealth advisor. If you’re not already a Mercer Advisors client, let’s talk.

Source: https://www.irs.gov/pub/irs-drop/n-24-35.pdf