SECURE Act 2.0 could change the age of RMDs
January 5, 2023
In 2019, the Set All Communities for Retirement Enrichment (SECURE) Act increased the minimum required distribution (RMD) age. Now, the Secure Act 2.0 of 2022, passed in December, raised the RMD age to 73 for some and 75 for all others.
The impact of this change is:
- If you are already taking RMD, there are no changes.
- If you turned 72 in 2023 and would have started receiving RMDs, you do not need to make any distributions. It starts when you turn 73. In fact, if he was born in 1959 from 1951, the RMD start age is he is 73 years old.
- If you were born after 1960, the onset age for RMD is 75.
Remember these are distributions that the government needs (so they can take those taxes from you!), but they need to use these funds for living expenses and other expenses. If you have, you can withdraw from your deferred tax account early. However, if you don’t need these funds now, this delay will give your account more time to grow.
The longer your RMD has been in use, the more tax-effective ways you can develop a strategy to fund your goals and expenses. A little more!