SECURE 2.0 Act Increased RMD Age!

By Anthony L. Scialabba IV, Esq., QKA

RMD Age Increased:

The SECURE 2.0 Act increased the age at which an account holder must take a required minimum distribution (“RMD”) from age 72 to age 73 in 2023 and from age 73 to age 75 in 2033.

Example of RMD Age Increased:

Roger reaches age 72 on June 20, 2023. Since the SECURE 2.0 Act delays RMDs until an account holder reaches age 73, Roger does not have to take an RMD in 2023 (If Roger did, he would have to take an RMD by April 1, 2024.). Roger will reach age 73 on June 20, 2024. Thus, Roger will have to take an RMD by April 1, 2025.

Why RMD Age Increased:

Americans are generally working and living longer (i.e., the RMD age increase reflects the condition of a portion of the United States today). Assets may be invested longer, as an individual has more time to determine when to take a withdrawal. Such a delay may lead to more retirement savings being collected.

If you have any questions or comments with regard to RMDs or any other provisions of the SECURE 2.0 Act, please call 856-396-0499 or email clientservices@retirewelltpa.com.