Comment from Marold, John

1) I respectfully recommend that the Internal Revenue Service update the IRS Model Individual Retirement Account (IRA) Forms and associated instructions to reflect the significant statutory and regulatory changes enacted since the last substantive updates in 2017. The Model IRA Forms play a critical role in promoting compliance, standardization, and consumer understanding. However, since 2017, Congress and the Treasury Department have enacted numerous changes affecting IRA eligibility, required minimum distributions (RMDs), beneficiary distribution rules, and plan administration. The absence of corresponding updates has created legal ambiguity and increased compliance risk for custodians, trustees, and account owners. Most notably, the statutory framework governing RMDs has changed substantially, including increases to the required beginning date, revisions to penalty structures, and expanded correction mechanisms. The current Model Forms continue to reference outdated RMD ages and penalty provisions, which may mislead taxpayers and complicate required disclosures. In addition, the SECURE Act of 2019 fundamentally altered post‑death distribution rules by eliminating lifetime “stretch” distributions for most non‑spouse beneficiaries and introducing the 10‑year distribution rule, while redefining eligible designated beneficiaries. These changes, including the interaction between the 10‑year rule and annual RMD requirements, are not reflected in the Model Forms. The Model Forms also have not been updated to reflect the repeal of the age 70½ limit on traditional IRA contributions, expanded Roth IRA planning features, or the requirement that Roth IRA agreements permit acceptance of SEP employer contributions. Further changes introduced by the SECURE 2.0 Act of 2022 have widened the gap between the Model Forms and current law. Updating the Model IRA Forms would improve compliance, promote consistent disclosures, reduce reliance on individualized modifications, and enhance taxpayer understanding. In addition, updated Model Forms would allow IRA custodians and trustees to proceed with amendments to existing IRA agreements that rely on Forms 5305 and related models. I respectfully encourage the IRS to undertake a comprehensive review and modernization of the Model IRA Forms and instructions to align them with current statutes, regulations, and published guidance. 2) In addition, I respectfully urge the IRS to finalize the second wave of regulations under section 401(a)(9), particularly those addressing required minimum distributions for inherited IRAs and IRAs payable to trusts. Clear and final guidance is especially needed with respect to the proper calculation of RMDs for spousal inherited IRAs, including circumstances in which a surviving spouse is treated as the IRA owner, elects to treat the IRA as the spouse’s own, or calculates distributions based on life expectancy. More clarity on how this election is made for a see through conduit marital trust would be helpful. Continued uncertainty regarding the applicable life expectancy tables, the timing of elections, and the interaction of spousal rollover and beneficiary rules has resulted in inconsistent interpretation and administration among custodians and advisors. Final regulations in this area would materially improve compliance and uniform administration. Thank you for considering these comments.