May 25, 2022

Internal Revenue Service
Treasury Department
Submitted via www.regulations.gov

Re: IRS REG-105954-20

To Whom It May Concern:

The Securities Industry Financial Markets Association (SIFMA)1 appreciates the opportunity to comment to the IRS regarding proposed regulations2 implementing the required minimum distribution requirements for plans qualified under section Internal Revenue Code (“Code”) Section 401(a) and individual retirement plans as defined under Code Section 7701(a)(37), as well as the update to the regulations to reflect the amendments made to Code Section 401(a)(9) by the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act).3

This letter is a follow-up to our letter submitted March 22, 2022 (see Appendix 1) where we highlighted our most timely concerns so the IRS could start working on addressing those issues immediately. We also joined with other trade associations to express the point regarding the necessity of the IRS moving quickly to address the time-sensitive issues.4 This letter addresses our other comments about the proposed regulations.

I. IRS Relief for Time-Sensitive Issues and Additional Implementation

We remain particularly concerned about actions that our members’ clients may have already taken in good faith, but without official guidance from the IRS. We hope the IRS will quickly address the time-sensitive issues raised in our previous letter. We also are concerned that if the IRS is unable to finalize the regulations in a timely manner, we will continue to need relief.

The IRS should plan on providing additional implementation time once the regulations are finalized. Relief should be provided for RMD decisions in prior years, based on good faith interpretations, so that individuals do not face costly excise tax penalties for distributions which were not taken prior to the compliance date of the final rule. In the longer term, then final rules should include a reasonable implementation period. We request the IRS grant 12-18 months of transition relief after the issuance of final regulations. This is needed to allow individuals to determine how the rules apply to them, gather the necessary documents, and allow plan administrators and financial institutions to make process and system enhancements to support the new requirements.

1 SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the
U.S. and global capital markets. On behalf of our industry’s one million employees, we advocate on legislation,
regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related
products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed
regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and
professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the
Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.
2 87 Fed. Reg. 10504 (February 24, 2022)
3 The SECURE Act was enacted on December 20, 2019, as Division O of the Further Consolidated Appropriates Act
of 2019, Public Law 116-94, 133 Stat. 2534 (2019).
4 March 25, 2022 Letter from American Benefits Council, American Council of Life Insurers, Committee of Annuity
Insurers, Finseca, Insured Retirement Institute, Investment Company Institute, National Association of Insurance and
Financial Advisors, National Association of Professional Employer Organizations, Retirement Industry Trust
Association, Securities Industry Financial Markets Association, Small Business Council of America, and The SPAKR
Institute, which can be found here: https://www.sifma.org/resources/submissions/joint-trades-request-for-immediateguidance-needed-to-extend-rmd-and-secure-act-effective-dates/