New Regs Implement SECURE Changes to Plan Distributions (Part 2)

Recently finalized Treasury regulations on employee retirement account distributions provide respective rules where a participant dies before or after the beginning date, and address separate accounts for multiple beneficiaries, and spousal election for defined contribution plans, which we will discuss in this Part 2 of a two-part article series. Part 1 focused on when and to whom the new distribution rules apply, and IRS interpretation regarding distributions starting during an employee’s lifetime as well as the determination of designated beneficiaries.

Reg. §1.401(a)(9)-0 through -9, as finalized July 19, 2024 (preamble and final regs at 89 Fed. Reg. 58,886), generally ...