IRS Issues Update on Rules for Emptying Retirement Accounts

Jan. 24, 2020, 9:43 PM

The IRS is adjusting the rules governing age-related reporting requirements mandated by the newly enacted SECURE Act.

The new law, which took effect Jan. 1, changes the age at which account holders must draw down qualified retirement plans from 70½ to 72 years old.

Notice 2020-06, issued Jan. 24, gives plan administrators until June 1 to file paperwork for account holders liable for required minimum distributions this year. No notification is required for account holders turning 70½ in 2020.

Pre-existing law required administrators to notify those turning 70½ in 2020 about the mandatory withdrawals by Jan. 31. The IRS...

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