Under the Setting Every Community Up for Retirement Enhancement Act, employer plans must make required minimum distributions to employees starting by the required beginning date and to beneficiaries of employees who die before their RBD. The IRS issued proposed regulations (proposed regs) that were set to take effect on Jan. 1, 2025.
However, commenters raised issues regarding some of the provisions of the proposed regs and were concerned that implementing many of them would be difficult if they took effect Jan. 1, 2025.
In response, in Announcement 2025-2, the IRS said the provisions of future final regulations are anticipated to apply beginning in 2026. Until then, taxpayers must apply a “reasonable” good-faith interpretation of the statutory provisions.
