IRS Gives the Holiday Gift of SECURE 2.0 Guidance

IRS Gives the Holiday Gift of SECURE 2.0 Guidance

By Sarah Brenner , JD
Director of Retirement Education

On December 20, the IRS gave us the holiday gift of some guidance on a few provisions from the SECURE 2.0 Act. Notice 2024-02 is in a question-and-answer format and provides much needed clarification on SECURE 2.0 provisions, some of which are already in effect, and others which will come online in just a few short days in 2024.


Q: I have a traditional IRA with a portion being nondeductible contributions. The last nondeductible contribution I made was in 2009. and I have my Form 8606 showing the basis. I want to convert a portion of my traditional IRA to a Roth IRA. Can I convert all of the nondeductible amount plus some of the before-tax contributions to a Roth IRA? I have never taken any distributions from my traditional IRA. I'm 52 years old.


Q: My brother passed away in May 2023. He had a small IRA with no beneficiary. He was 73 at the time of his death. His estate is to be divided equally among his eight brothers and sisters, ranging in age from 61 to 77. He was passionate about a small wildlife research project in his later years and some of the beneficiaries would like to transfer their benefit to the nonprofit. 1. Can you make charitable donations out of an inherited IRA? 2. Can each beneficiary, no matter their age, make the donation because the original owner was over 70½ and taking RMDs, or do they have to take the distribution, recognize it as income, and make the charitable donation individually?


Q: If the grandkids who inherited an IRA are under the age of majority, when does the 10-year rule for emptying the account begin? At the death of the IRA owner, or when they reach the age of majority?


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