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IRA Update (IRS Notice 2023-54): Required Minimum Distribution for Owners and Beneficiaries

Well, the IRS did it again. On July 14, 2023, they issued IRS Notice 2023-54 and kicked the can down the road for the second time by postponing the implementation of the Proposed Regulations that were released in February 2022 regarding mandatory distributions for non-spouse beneficiaries. In addition, the late signing of the SECURE Act 2.0 which raised the Required Minimum Distribution age for the second time in 3 years really created a lot of speculation and confusion on its effective date.

OnDemand
Recorded Thursday,
August 10th, 2023
Presented by Patrice Konarik
1h 30m total length
$279.00 or 1 Token

Includes: 30 Days OnDemand Playback, Presenter Materials and Handouts

  • Compliance
  • Customer Service
  • Deposit
  • Deposit Accounts
  • IRAs
  • Reporting
  • Teller
  • Trusts
  • Branch Manager
  • Customer Service Representative
  • Deposit Operations Manager/Specialist
  • New Accounts Representative
  • Private Banker
  • Teller
  • Training Manager
  • Trainer
  • Trust Officer

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In late December 2022, the SECURE Act 2.0 raised the required distribution age from 72 to 73 effective January 2023. What they didn't mention was that it really would not affect any IRA owners until 2024. Interpretation of the start date and Required Beginning Date (RBD) was all over the place. Many owners turning 72 in 2023 received an RMD Notice in January 2023 in error saying they had to take an RMD. Some of them took one and now they want to put it back. Can they?

In addition, the IRS released the original SECURE Act in 2020 taking away the 'stretch payout' for most non-spouse beneficiaries. They inadvertently left out the part where beneficiaries of owners who were in RMD had to continue payments "At Least as Rapidly" (ALAR rule) as the deceased owner or over their own single life expectancy. This gave the indication that every beneficiary would have optional payments in the first 9 years and then closed by 12/31 of the 10th year after death. They tried to rectify this by releasing the Proposed Regulations in February 2022 as a "fix" to the situation which was expected to take effect for 2022 death distributions. They decided to postpone that implementation in October 2022 with IRS Notice 2022-53 and then again in July 2023 with IRS Notice 2023-54.

What You'll Learn

  • What happens if the bank sent out an RMD Notice to those turning 72 this year and an RMD was taken in error?
  • What are the actual ages to start RMDs now and what does the Required Beginning Date mean?
  • What does the term 'mischaracterized RMD' really mean?
  • What is the deadline for putting the RMD back in the IRA and what is the process?
  • Does a non-spouse beneficiary have mandatory annual RMD death distributions in the first 9 years after the IRA owner dies?
  • What will happen when and if the IRS finalizes the Proposed Regulations?

Who Should Attend

Any employee and customer service rep who answers customer questions on IRAs and is not familiar with the new IRS Notice 2023-54 and its interpretation should attend this focused, informational session on the details and procedural changes for this latest IRS Notice effecting IRA distributions.

Patrice Konarik

Instructor Bio

Patrice M Konarik is president of Sunwest Training Corp founded almost 30 years ago and located in the Texas Hill Country near San Antonio. With over 40 years of experience in the financial industry, Patrice has focused her expertise on the retirement account area. After 28 years on the road providing live training nationwide, she now concentrates on providing informational IRA and HSA webinars through OnCourse Learning. She has a B.S. in Management Science from New York’s Binghamton University and previously held her Certified Financial Planner designation for 23 years.

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