Defined Contribution Plan Alert: IRS Proposes New Rules For Required Minimum Distributions

On February 24, 2022, the IRS issued proposed regulations (the “Proposed Regulations”) for determining the required minimum distribution (“RMD”) payable to retirement plan participants and their beneficiaries. The Proposed Regulations comprehensively restate the existing regulations under section 401(a)(9) and related provisions of the Internal Revenue Code (the “Code”) to (1) address changes to the RMD rules resulting from the Setting Every Community Up for Retirement Enhancement Act of 2019 (the “SECURE Act”), (2) clarify in formal guidance issues raised in public comments and Private Letter Rulings, and (3) replace the question-and-answer format of the existing regulations with a standard format.