IRS Extends Relief: RMD Rules for IRAs Delayed Again


The Internal Revenue Service (IRS) has announced another extension of relief for retirement account owners. This time, it involves required minimum distribution (RMD) rules for Individual Retirement Accounts (IRAs). The decision to delay these rules aims to provide additional flexibility for retirees and account holders during uncertain times. In this article, we will explore the IRS’s recent decision to extend relief for RMD rules and its implications for retirees and their financial planning.

  1. Understanding RMD Rules

Required Minimum Distributions are IRS regulations that require individuals with tax-advantaged retirement accounts, like Traditional IRAs and 401(k)s, to withdraw a minimum amount each year once they reach a specific age. The purpose of RMD rules is to ensure that retirement account funds are gradually distributed and taxed. The RMD amount is calculated based on life expectancy and account balance.

  1. Initial Relief in 2020

In 2020, amid the economic uncertainty caused by the COVID-19 pandemic, the IRS introduced a relief measure that allowed retirement account owners to skip their RMDs for that year. This relief was designed to protect retirees from being forced to sell investments during a market downturn, potentially locking in losses. It was a one-time opportunity to forgo RMDs.

  1. Subsequent Extensions

The relief provided in 2020 was well-received by retirees and financial professionals. As a result, the IRS extended this relief through 2021, giving retirement account owners the flexibility to skip RMDs for another year.

  1. The Recent Extension

The IRS has now announced another extension, providing relief for RMD rules through 2022. This means that retirees who were expecting to take RMDs from their retirement accounts in 2022 can once again skip those distributions. The extended relief applies to various retirement account types, including IRAs, 401(k)s, 403(b)s, and others.

  1. Implications for Retirees

The extension of relief for RMD rules has several implications for retirees and their financial planning:

  1. Preservation of Investments

Retirees can retain their investments without being compelled to sell assets to meet RMD requirements. This can be particularly beneficial during market downturns, as it allows investments more time to recover.

  1. Tax Planning

The relief provides an opportunity for retirees to engage in tax planning. By skipping RMDs, they can potentially reduce their taxable income for the year, which may result in lower tax liabilities.

  1. Financial Flexibility

Retirees who don’t depend on their RMDs for immediate income have more financial flexibility. They can choose when and how much to withdraw from their retirement accounts based on their financial needs.

  1. Reevaluation of Financial Goals

The extended relief allows retirees to revisit their financial goals and long-term retirement plans. They can adjust their withdrawal strategy to better align with their current and future financial needs.

  1. Beneficial for Inherited IRAs

The extension of relief isn’t limited to retirees; it also applies to beneficiaries of inherited IRAs. Beneficiaries can continue to defer RMDs for another year, allowing inherited retirement accounts to grow tax-deferred.

  1. Stay Informed

It’s crucial for retirees to stay informed about the latest updates from the IRS and how they impact their retirement planning. The rules and regulations regarding retirement accounts are subject to change, and being aware of these changes can help retirees make informed decisions.

  1. Consult a Financial Advisor

For personalized guidance on how the extension of RMD relief affects your retirement planning, it’s advisable to consult with a financial advisor or tax professional. They can help you assess your specific situation and create a plan that aligns with your retirement goals.


The IRS’s decision to extend relief for RMD rules is a welcome development for retirees and beneficiaries of retirement accounts. It provides flexibility, preserves investments, and offers tax planning opportunities. However, retirees should carefully consider their individual financial circumstances and consult with financial professionals to make the most of this relief. As financial planning continues to evolve, staying informed and making well-informed decisions is essential for a secure and comfortable retirement.