Industry News

On February 23, 2026, the Internal Revenue Service (IRS) released Announcement 2026-7 to provide additional time to comply with certain proposed Required Minimum Distribution (RMD) regulations under Internal Revenue Code Section 401(a)(9). The IRS postponed the implementation of its updated rules for RMDs due to comments stating that the timing of the regulations posed significant challenges. The plans affected would include 401(k)s, pensions, individual retirement accounts (IRAs), 403(b) accounts and certain government deferred compensation plans.

The most recent extension will require the future final regulations to apply to RMDs for the distribution calendar year that begins no earlier than six months after the date that final regulations are issued in the Federal Register. The rules governing RMDs from retirement accounts that were first proposed in February 2022 (in response to the passage of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act)) will not take effect until at least 2027. However, no date has been proposed since the cancellation of the initial applicability date for distributions occurring on or after January 1, 2025. In the interim, taxpayers are required to follow a “reasonable, good-faith interpretation” of the underlying statutory provisions.

Announcement 2026-7 is available here.