How This New Accounting Rule Could Affect You
The Internal Revenue Service (IRS) Notice 2022-53 has cleared up the Required Minimum Distributions (RMDs) rule. The latest legislation requires people to be more aware of their tax obligations when they inherit certain retirement accounts. Please click here to read IRS Notice 2022-53.
The IRS Notice 2022-53 clears up two items:
- 2023 will be the first year RMDs for the inherited IRAs are required for the ten-year plan.
- No penalties will be assessed for RMDs not taken in 2021 or 2022.
Proactive approach
While more clarification from the IRS on its standpoint is welcome, the downside of the new ruling is that beneficiaries cannot wait ten years to take RMDs. Also, it’s imperative that when beneficiaries receive inherited Individual Retirement Accounts (IRAs), they begin to understand the new ruling, so they don’t get penalties for not taking RMDs.
Due to the complexities of the legislation, we recommend that individuals always speak to a Financial Advisor when they inherit any assets, as receiving any additional income can have direct tax implications.
Get in touch with us today!
At Cooley & Martin, we can help sort out and explain any confusion with the new change to the tax law. We also have many years of experience to help you with your accounting needs. Additionally, our team offers personalized solutions to meet the requirements of individuals and businesses.
Our services include taxpayer defense and representation, tax compliance, and accounting services. We also offer small business capital funding assistance and professional notary services to our clients.
We serve clients across Charlottesville, Lynchburg, Tuckahoe, Harrisonburg, Staunton, Waynesboro, Fredericksburg, Laurel, Glen Allen, Madison Heights, Culpeper, VA, and the surrounding areas.
To learn more about the other services we have to offer, please click here. If you have any questions about accounting, please get in touch with us by calling (434) 975-2663 or emailing info@gjccpa.com.