This week’s theme on the Retirement Quick Tips Podcast is: SECURE 2.0 Act & The BIG Changes You Need To Know

Today, I’m talking about the biggest change with the new SECURE 2.0 Act to take effect in 2023 - the increasing required minimum distribution or RMD age from 72 to 73 this year, and eventually up to age 75 in 10 years in 2033. 

Here’s what this new change means: The age at which owners of retirement accounts must start taking RMDs will go up to age 73, starting January 1, 2023. 

The previous starting age under the original SECURE Act to take RMDs was 72, so you’ll now have one more year that you could delay taking your RMD from IRAs, 401ks, and other tax-deferred retirement savings accounts.

And of course, we wouldn’t have a new rule for RMDs, without a couple of confusing and complicating factors. The first is that if you turned 72 in 2022 or earlier, you will need to continue taking RMDs, since you’ve already started. 

But if you’re turning 72 this year or later, again the age that you need to start goes up to age 73, so you won’t need to take your first mandatory distribution until the end of the calendar year that you turn 73. The other complicating factor is that the RMD age will eventually go up to 75, but not for 10 years, in 2033.

In effect, if you were born in 1950 or earlier, your RMD age is 72. If you were born in 1951-1959, your RMD age is 73, and if you were born in 1960 or later, your RMD age will be 75. 

That’s it for today. Thanks for listening! 

Tomorrow I’ll talk about some things you’ll want to think about and some potential financial planning implications with this new change to RMDs. My name is Ashley Micciche and this is the Retirement Quick Tips podcast.    

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