The Internal Revenue Service has released guidance clarifying new requirements for minimum distributions from individual retirement accounts considering recent changes.

The Setting Every Community Up for Retirement Enhancement (Secure) Act of 2019, signed by U.S. president Donald Trump in December as part of the federal government appropriations bill, includes a provision raising the age for required minimum distributions (RMDs) from 70 1/2 to 72.

The IRS’ notice, which is aimed at financial institutions, clarifies that IRA owners who will turn 70 1/2 in 2020 will not have an RMD beginning Apr. 1, 2021.

Meanwhile, if IRA owners have an RMD due for 2020, the financial institutions that act as a trustee, custodian or issuer maintaining the IRA must submit appropriate forms by Jun. 1, 2020 and provide the owners with an RMD statement by Jan. 31, 2020, informing them of the deadline to take the RMD as well as its amount or an offer to calculate the amount upon request, the IRS says.

Additionally, the IRS will not consider RMD statements already submitted by financial institutions to IRA holders who aren’t reaching 70 1/2 until next year “to have been provided incorrectly” — as long as the institution notifies the IRA holders by April 15, 2020, that they don’t need to take an RMD in 2020 after all, according to the notice.

Finally, IRA owners who already reached 70 1/2 in 2019 do have to take their 2019 RMDs, the IRS says. Therefore, the agency encourages financial institutions to remind such IRA owners to take the RMDs by Apr. 1, 2020.

The IRS also says that, along with the Department of Treasury, it’s considering whether more guidance is necessary regarding the RMDs.

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