SECURE Acts 1.0 and 2.0 have changed many IRA rules. The IRS has recently issued guidance regarding the change of the Required Minimum Distribution (RMD) age from 72 to 73, which went into effect in 2023.
IRA rules allow owners to return RMDs tax-free within 60 days of distribution. Based on the timing of the 2023 RMD age change, many people were not aware of the change until the 60-day period passed.
The IRS will waive the 60-day requirement and allow the funds to be returned tax-free through September 30, 2023 (regardless of when the RMD was taken). Again this guidance affects only IRA owners who turned 72 in 2023.
In July 2023, the IRS issued a subsequent notice which provides another reprieve for non-eligible designated beneficiaries who inherited retirement accounts from an owner who died on or after their required beginning date, by eliminating penalties for not taking an RMD in 2023. However, the IRS has still not issued final rules.