IRS Extends Relief to 2023 for SECURE Act Era Designated Beneficiaries
July 26, 2023 | Denise Appleby | Wealth Management
The Internal Revenue Service recently issued Notice 2023-54, in which they waived the excise tax on 2023 required minimum distribution failures committed by designated beneficiaries. This extends the waiver already provided for 2021 and 2022 under Notice 2022-53. When advising taxpayers of these waivers, advisors must ensure they fit the narrowly defined benefiting class of beneficiaries. Taxpayers who don’t qualify but try to take advantage of these waivers might find that they owe the IRS excise tax that applies to RMD shortfalls.
