Tax Notes Quotes Ronald Cluett on Final Regulations for Required Minimum Distribution

The IRS has issued final regulations implementing legislative changes for required minimum distributions (RMDs), including a highly contested interpretation of the new 10-year rule.

“While certain changes were made in response to comments received on the proposed regulations issued in 2022, the final regulations generally follow those proposed regulations,” the IRS said in a July 18 release announcing the final rules (T.D. 10001).

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Ronald G. Cluett of Caplin & Drysdale told Tax Notes that “arguments regarding congressional intent notwithstanding, a more robust articulation of the plain reading analysis would have been helpful, and I expect this provision of the final regulations to continue to generate controversy.”

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Cluett said that while some of the proposed rules have a narrow application, others may be of more general interest, such as the rule regarding spousal elections. “Therefore, while the final regulations do provide a comprehensive restatement of the RMD rules, some key issues such as this spousal election have yet to be finalized,” he said.

For the full article, please visit Tax Notes’ website (subscription required).