2025 Update: RMDs and Inherited Retirement Accounts
Presented by
Marc Aarons
I hope you’re doing well. I’m reaching out to make sure you’re aware of an important update on inherited IRAs, particularly for non-spouse beneficiaries navigating the latest IRS regulations.
What’s changed?
Under the SECURE Act of 2019, most non-spouse beneficiaries must withdraw the full balance of an inherited IRA within 10 years. Initially, many assumed they could wait until the final year to take distributions. However, the IRS later clarified that if the original account holder had already begun required minimum distributions (RMDs), beneficiaries would also need to withdraw annually during the first nine years.
What does this mean for 2025?
The IRS recently issued Notice 2024-35, providing relief for those who missed RMDs from 2021-2024. Key points:
- If you inherited an IRA from someone who had already started RMDs, you were not penalized for missing withdrawals in 2021-2024.
- This applies to IRA owners who passed away in 2020 or later.
- The RMD rule is effective as of January 1, 2025, meaning waivers will not be available for this calendar year.
The SECURE Act withdrawal rule does not apply to:
- Surviving spouses
- Minor children of the original account holder (under 21)
- Individuals with disabilities or chronic illness
- Non-designated beneficiaries (e.g., charities, estates)
- Accounts inherited before 2020
Since these rules are complex and evolving, I’d be happy to review your situation and help ensure you’re on track. Let’s set up a time to talk — just reply to this email, and we’ll find a time that works for you.
Please don’t hesitate to reach out with any questions or concerns.
Marc Aarons may be reached at 714-887-8000 or Email Marc
This communication is from Money Managers, Inc.; a Securities and Exchange Commission registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results. Investments involve risk and are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.
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