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N/T sort of - It's the darnest thing


jklcpa

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Lots of drop offs earlier than ever. Huge HOLD stack on my floor for missing info, waiting on IRS/software (did you read about the March change to inherited non-spousal IRAs?), or just need to re-proofread now that that last schedule/form is finally in the software. I'm buried but very, very backlogged.

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Newest temp regs say you DO need to take annual RMDs from inherited IRAs and then the remainder by the end of year 10. Prior, but still very new, regs said take any amount(s) in any year(s) or none at all as long as entire account is emptied by the end of year 10. So, those that inherited in 2020 and 2021 may have some prior year RMDs to take. Or extend 2021 to see what happens with March's proposed change. It's so hard to keep track.

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Glad we're not the only ones. Yeah, tons of completed returns with no one bothering to fetch, lots of super-early drop-offs. Coupled with a number of usually-early clients from whom we have heard nary a peep. Very weird year.

Plus the IRS still has not decided if the MA paid family/medical leave pay is taxable or not.  MA says they'll accept whatever the feds decide. So all of those returns wait to be finalized.

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  • 6 months later...
On 3/11/2022 at 11:43 PM, Lion EA said:

Newest temp regs say you DO need to take annual RMDs from inherited IRAs and then the remainder by the end of year 10. Prior, but still very new, regs said take any amount(s) in any year(s) or none at all as long as entire account is emptied by the end of year 10. So, those that inherited in 2020 and 2021 may have some prior year RMDs to take. Or extend 2021 to see what happens with March's proposed change. It's so hard to keep track.

Just seeing if any of you have had any updates on these proposed regs.  Have these regs become final?   Or still proposed?   

My clients don't like this requirement.   We do have to follow the proposed regs, right?   The old law was 5 years and the regs said take it out any way you want so long as it is gone by the end of 5 years.   The new law only changed the number of years, so IRS is making the required distribution rules up themselves (not unusual, no judgements being made).  

Tom
Longview, TX

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19 minutes ago, BulldogTom said:

Just seeing if any of you have had any updates on these proposed regs.  Have these regs become final?   Or still proposed?   

My clients don't like this requirement.   We do have to follow the proposed regs, right?   The old law was 5 years and the regs said take it out any way you want so long as it is gone by the end of 5 years.   The new law only changed the number of years, so IRS is making the required distribution rules up themselves (not unusual, no judgements being made).  

Tom
Longview, TX

An online search found a long list of articles about this situation. A quick skim of the articles reveals a number of variables that need to be considered.

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I'm still not sure. And, I had a client call this week that inherited her mother's IRA and asked me. She'll have to wait until after 17 October. I really can't remember everything that's passed over the last three tax seasons, especially which IRS regs are final. And, so little published since Covid, just FAQs!

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