New Regs Implement SECURE Changes to Plan Distributions (Part 1)

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

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