The beginning age for retirement plan Required Minimum Distributions (“RMD’s”) is changing once again! Required Minnimum Distributions are the minimum amount that a retirement plan participant must distribute each year. Participants are taxed on the distribution, which, without proper planning, can result in a nasty tax bill. The good news is that the RMD beginning age is moving to age 73, leaving retirees longer to plan. Here are the details of the new rules:
Currently, RMD’s begin at age 72, but new rules begin January 2023 that raise the RMD age to 73 for those individuals born between 1951 and 1959, and age 75 for those born in 1960 or later. This can get confusing, so here’s a quick table to help:
The RMD rule changes are just a few of the dozens of retirement plan laws that were attached to the 2022 Omnibus spending bill. While none of the changes are dramatic, there are many small changes that retirees should consider. If you have any questions on what this means for you, please give us a call.