Compliance Corner

Retirement Updates

IRS Provides Relief for Reporting 2023 IRA Required Minimum Distributions

March 14, 2023

SECURE 2.0, which we covered in detail in our January 4, 2023, edition of Compliance Corner, delayed the required beginning date for required minimum distributions (RMDs) for IRA owners. IRS Notice 2023-23 provides relief for financial institutions tasked with filing Form 5498 (IRA Contribution Information) for individuals for whom an RMD would have been due in 2023 had the delay under SECURE 2.0 not occurred.

However, the delayed beginning date may result in some financial institutions sending Form 5498 erroneously. Therefore, as long as the IRA owner is notified by the financial institution no later than April 28, 2023, that an RMD is not actually required for 2023, the financial institution will be in compliance.

The IRS encourages financial institutions to clearly communicate these RMD changes to affected individuals.

IRS Notice: Relief for Reporting Required Minimum Distributions for IRAs for 2023 ยป