On Friday, July 14, 2023, the IRS issued Notice 2023-54 providing transition relief from excess accumulation penalties for certain beneficiary required minimum distributions (RMDs) as well as rollover relief for IRA owners and plan participants who turned age 72 in 2023. The relief provided in Notice 2023-54 relates both the required distribution changes brought about by the SECURE Act of 2019 as well as the most recent change in RMD starting age brought about by SECURE Act 2.0.

SECURE Act 2.0, enacted in December of 2022, increased the RMD starting age from age 72 to age 73 effective January 1, 2023. As a result of this change, plan participants and IRA owners born in 1951 (i.e., those turning age 72 in 2023) were not required to take an RMD for 2023, Recognizing that many providers were unable to adjust their systems and administrative procedures in time to reflect this change, the IRS is providing several forms of relief for distributions involving IRA owners and plan participants who turned age 72 in 2023.

Additional Information is available from Convergent Retirement Plan Solutions, LLC.