IRS Postpones RMD Rules

The Internal Revenue Service postponed the implementation of its updated rules for required minimum distributions from retirement plans, citing comments stating that the regulations’ timing posed challenges. Plans affected would include 401(k)s, pensions, individual retirement accounts, 403(b) accounts and certain government deferred‑compensation plans.

On Monday, the agency issued Announcement 2026-7 stating that regulations will not be applicable until the first distribution calendar year that starts at least six months after the final regulations are published in the Federal Register. However, no date has been proposed since the cancelation of the initial applicability date of January 1, 2025. In the meantime, taxpayers are required to follow a reasonable, good-faith interpretation of the underlying statutory provisions.

The IRS and the Department of the Treasury initially proposed RMD regulations in February 2022 in response to the passage of the Setting Every Community Up for Retirement Enhancement Act of 2019.

However, the SECURE 2.0 Act of 2022 later passed, which included RMD provisions, leading the agency to publish further rules in July 2024.

With limited exceptions, the 2024 proposed regulations were set to govern RMDs for calendar years beginning on or after January 1, 2025, aligning their effective date with the anticipated 2024 final regulations.

Stakeholders raised concerns about the practicality of implementing many provisions by the proposed deadline in written comments and during the September 2024 public hearing. Stakeholders pointed to two main reasons for their apprehension: the expected timing of the final regulations and ongoing uncertainty. As a result, the IRS decided in December 2024 to postpone the applicability date from January 1, 2025 to January 1, 2026.