The Internal Revenue Service (IRS) often updates the rules on taking required minimum distributions (RMDs) from retirement accounts such as individual retirement accounts (IRAs) and 401(k)s. The rules were complicated and confusing—particularly for those who inherited retirement accounts, leaving them uncertain about what to do.
Because of the complications, the IRS did not issue any penalties for failing to withdraw the required amount or taking any withdrawals during 2022. This exception only applied to some inherited IRA RMDs during 2020 or 2021.
RMDs for Inherited IRAs
Typically, withdrawals are required for people that inherited IRAs from people that died during 2020 or 2021. The IRS notice delayed the requirements for non-eligible designated beneficiaries (NEDBs). NEDBs are people other than spouses, minor children, chronically ill or disabled, and some trusts. TheStreet said that NEDBs are also not required to make an RMD for 2022 if the owner died after the required starting date.
Mike Valles
Author
Mike Valles has been a freelance writer for many years and focuses on personal finance articles. He writes articles and blog posts for companies and lenders of all sizes and seeks to provide quality information that is up-to-date and easy to understand.
