The IRS pushed out recent guidance given ALL THE PEOPLE that missed their RMDs in 2021 and 2022. Watch this to see if this issue applies to you.

0:00 – Intro
1:00 – Are you a NEDB?
1:52 – Was the decedent passed their RBD?
2:42 – Original 10yr Rule Interpretation
3:17 – The CORRECT Interpretation
4:40 – Course of Action if you missed an RMD
6:25 – Course of Action if you paid the penalty tax
7:29 – Roth IRA Guidance
7:52 – Calls to Action

IRS Notice 22-53 –

#rmds #ira #rothira #financialplanning #wealthmanagement #financialservices #taxes #retirement #retirementplanning #stocks #edmonds #seattle #cfp…(read more)

LEARN MORE ABOUT: IRA Accounts

TRANSFER IRA TO GOLD: Gold IRA Account

TRANSFER IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

If you inherited an IRA in 2021 or 2022, you may have missed an important deadline: the required minimum distribution (RMD). RMDs are required by the IRS for all inherited IRAs, and missing one can result in significant penalties.

The RMD for an inherited IRA is based on the life expectancy of the original owner, not the beneficiary. The IRS requires that the RMD be taken by December 31st of the year following the year of the original owner’s death. For example, if the original owner died in 2021, the RMD must be taken by December 31, 2022.

If you missed the RMD deadline, you may be subject to a 50% penalty on the amount of the RMD that should have been taken. In addition, the IRS may assess additional penalties and interest on the amount of the RMD.

Fortunately, there are ways to minimize the penalties associated with missing an RMD. The IRS allows beneficiaries to take a “catch-up” RMD, which is an additional RMD that must be taken by April 1st of the following year. This catch-up RMD will reduce the penalty to 25% of the amount of the RMD that should have been taken.

In addition, the IRS may waive the penalty if you can demonstrate that the failure to take the RMD was due to reasonable cause and not willful neglect. To be eligible for the waiver, you must provide evidence that the failure to take the RMD was due to a reasonable cause, such as a death in the family, a serious illness, or other similar circumstances.

If you have missed an RMD from an inherited IRA, it is important to take action as soon as possible. Taking the catch-up RMD or requesting a penalty waiver from the IRS can help to minimize the penalties associated with the missed RMD.