Answers to questions about required minimum distributions

What to do when your retirement account tax holiday ends

When it comes to taxes, IRAs and 401(k) retirement accounts offer a pretty good deal. When you put some of your paycheck into those accounts, that money isn’t counted toward your taxable income.

And that’s not the only perk: your earnings on those accounts can grow without being reduced by taxes. You reduce your taxable income and increase your retirement savings while the Internal Revenue Service (IRS) sits idly by. What’s not to like?

But this great deal comes with an expiration date.

On December 20, 2019, the SECURE Act changed the RMD age for beginning required minimum distributions (RMDs) from 70 ½ to 72. On December 29, 2022, the Consolidated Appropriations Act of 2023 passed which included the retirement bill, SECURE 2.0 Act of 2022 (SECURE 2.0). The bill further pushed out the RMD ages. Beginning in 2023, for individuals attaining age 72 after Dec. 31 ,2022 the new RMD age is 73.  The RMD age will begin even later at age 75 for those who attain age 74 after Dec. 31, 2032.1


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