CNBC: IRS waives mandatory withdrawals from certain inherited individual retirement accounts—again

Once again, the IRS is waiving required withdrawals from specific inherited individual retirement accounts. But this delay may end up hurting beneficiaries in the long run. Ed Jastrem, Chief Planning Officer at Heritage Financial, discussed the effects of the recent IRS updates with CNBC.

“The latest IRS update says those heirs won’t incur a penalty for missed RMDs for inherited accounts in 2024. But they still must empty the account by the original 10-year deadline. That “could be a little dangerous because it is potentially just letting you kick the can down the road on making a decision,” according to certified financial planner Edward Jastrem, chief planning officer at Heritage Financial Services in Westwood, Massachusetts. With years of delayed RMDs, heirs with sizable pretax inherited retirement accounts may need larger future distributions to empty the account within 10 years.”

Read the full article on CNBC here.

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