Unclear IRS guidance regarding how long beneficiaries are required to take payouts from inherited IRAs continues to bedevil estate and retirement planning.
At the heart of the matter is the IRS’s new guidance, Publication 590-B, which seems to indicate that certain beneficiaries will no longer have 10 years to take distributions from inherited IRAs and instead will be required to take payouts the first year of their inheritance.
“Most practitioners are under the impression that under the SECURE Act that the designated beneficiary can wait until the 10th year following the year of death of the IRA owner to withdraw the decedent’s entire IRA account balance and avoid the IRS 50% penalty tax,” Seymour Goldberg, tax attorney and CPA at the Melville, N.Y. law firm of Goldberg & Goldberg, said in a blog this week.
Tracey Longo | fa-mag.com