Latest News

Three changes to required withdrawals from retirement accounts

There are Secure 2.0 changes as part of the year end omnibus bill that retirees should know about. CNBC’s Greg Iacurci focuses on changes to required minimum distributions (RMDs) in this piece. The most important is raising the RMD age to 73 (and eventually 75). Currently, savers must begin taking RMDs at age 72. The withdrawal amount is based on a calculation dictated by factors like account value and longevity. The new law raises the RMD starting age to 73 starting in 2023 and to 75, starting in 2033. So, individuals who turn 73 this year must take their first distribution no later than April 1, 2024. The distribution for subsequent years would need to be made by Dec. 31 of that year. Note that people who delay their first withdrawal until early 2024 would need to take two distributions next year — one for 2023 and one for 2024. The other changes are eliminating RMDs from a Roth 401(k) and reducing RMD tax penalties. Full piece here.

Notice: The link provided above connects readers to the full content of the posted article. The URL (internet address) for this link is valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the link’s validity. Also, the opinions expressed in these postings are the viewpoints of the original source and are not explicitly endorsed by AMAC, Inc.; the AMAC Foundation, Inc.; or socialsecurityreport.org.

What's Your Opinion?

We welcome your comments. Join the discussion and let your voice be heard. All fields are required

Website by Geiger Computers