Key Takeaways
- The SECURE Act 1.0 delayed the starting age for RMDs from 70½ to 72.
- SECURE Act 2.0 further delays the ages to 73 and 75.
- As a practical matter, while most plan participants and IRA owners will need to access their retirement savings before those ages, the change creates an opportunity for higher compensated and wealthy individuals to delay the tax consequences of mandatory distributions from plans and IRAs.
The President signed the Consolidated Appropriations Act, which included SECURE Act 2.0, on December 29, 2022.
SECURE Act 2.0 has over 90 provisions, some major and some minor; some mandatory and some optional; some retroactively effective and some won’t be effective for years to come. This series of blog articles discusses the provisions that are likely to be the most impactful.
The first article was about Automatic Plans, a mandatory provision. The second article was about Matching Student Loan Payments, an optional provision.
This article discusses the extension of the starting age for Required Mandatory Distributions (RMDs). The SECURE Act 1.0 delayed the starting age from 70½ to 72. SECURE Act 2.0 further delays those dates. As a result of the changes in those two statutes, the ages for starting RMDs are: 72 in 2022; 73 in 2023; and 75 in 2033.
Continue reading The SECURE Act 2.0: The Most Impactful Provisions (#3–Extension of RMD Start Ages)
