@fanfare, do you have a link to this IRS clarification. When settling my mother's estate in late 2021, I talked to two separate institutional (PNC and TIAA_CREF) custodians of her IRAs and neither mentioned anything under review by the IRS concerning the SECURE act and the 10 year rule. In fact, to inherit the IRA, I had to sign a statement that I was taking it under the 10 year rule, and no exclusions applied to me. I have had no updates from either institution to date.
ETA I see some mention about it in a few articles the past couple weeks. Here's one from the Tri-City journal:
"The IRS has proposed that, because the SECURE Act did not specifically alter the annual distribution requirement, that it still remains. So, the IRS is contending (i.e. mandating) that the non-spouse beneficiary of an IRA take a fraction of the IRA for years 1-9 and take out anything remaining in year 10.
So, what’s the problem? Many people who have inherited an IRA since the SECURE Act was passed have assumed that no distributions were necessary and therefore chose not to take any distributions. And, until the recent passage of SECURE 2.0 in which the penalty will be decreased, the IRS imposed a penalty when a beneficiary failed to take a RMD of 50% on the amount not withdrawn.
Luckily, the IRS was sensitive to the outpouring of comments after it issued its proposed regulations when beneficiaries realized they might be subject to that 50% tax for failure to distribute the RMDs.
In Notice 2022-53, the IRS announced that its interpretation of the RMD rule would take effect (i.e. the final regulations will apply) no earlier than the 2023 distribution year. This means that those that failed to follow the IRS proposed regulations for 2021 and 2022 are in the clear.
But, for 2023, it’s time to be prepared to take the RMDs."
