IRS Delays Key Changes to RMD Regulations Until 2026

The IRS has released final and proposed regulations related to the changes brought by the SECURE 1.0 and 2.0 Acts affecting required minimum distributions (RMD) rules under Code section 401(a)(9). Initially scheduled to take effect on January 1, 2025, these regulations will now see certain key changes delayed until January 1, 2026, following IRS Announcement 2025-2 issued on December 18, 2024.

The announcement addresses industry concerns about the timeline for implementation, providing plan and IRA sponsors, as well as recordkeepers, additional time to adapt to the new regulations. Some regulations will still be effective from January 1, 2025. The proposed changes include adjustments in sections 1.401(a)(9)-4, 1.401(a)(9)-5, and 1.401(a)(9)-6, all aimed at ensuring a smoother transition and compliance for various stakeholders.