**FAQs**

**Q: What is the 10-Year Rule for inherited retirement accounts?**

A: The 10-Year Rule requires non-spouse beneficiaries to fully distribute inherited retirement accounts by the end of the 10th year following the original account owner’s death.

**Q: Do beneficiaries need to take annual Required Minimum Distributions (RMDs) under the new regulations?**

A: Yes, under the new Final Regulations issued by the IRS, Non-Designated Beneficiaries must take annual RMDs throughout the 10-year period after the original account owner’s death, in addition to fully distributing the account by the end of the 10th year.

**Q: What are some other regulatory guidance provided in the Final Regulations?**

A: The Final Regulations offer guidance on handling undistributed RMDs in the year of an account owner’s death, rules for surviving spouses who elect to use the 10-Year Rule, requirements for successor beneficiaries, definitions of beneficiaries of a See-Through Trust, and how annuity and non-annuity assets in a retirement account can be aggregated for RMD calculations.

**Conclusion**

The new Final Regulations issued by the IRS provide detailed guidance on the post-death tax treatment of inherited retirement accounts under the SECURE Act. Financial advisors and clients should familiarize themselves with these rules to navigate the complexities of tax planning around retirement accounts. With the additional requirements for beneficiaries to take annual RMDs, it is crucial to seek sound advice to make informed decisions and avoid potential pitfalls in estate planning.