NON SPORTS, but important. New RMD rules as of 1/23 called the SECURE 2.0 Act of 2022
I was somewhat reluctant to post this here, but this new law has changed things for the RMD (Required Minimum Distribution) rules. RMDs are the goverments way of saying they want their tax dollars from your pre-tax savings, 401k, IRA, etc. Failure to meet the deadline to make these withdrawals incur penalties.
If this does not apply to you, pls disregard. However, it may well apply to a family member whose Fiduciary, or Investment Firm has not, or does not timely advise their clients of these changes.
Source: Lord Abbett investments, Slott Report; IRA RMD Age Made Easy.
Required minimum distributions pushed to age 73
The SECURE Act of 2019 changed the age at which RMDs begin from 70½ to 72. Secure 2.0 increases the age at which RMDs begin to age 73 for those individuals who turn 72 on or after January 1, 2023. Notably, an individual who attains age 72 in 2023 is not required to take an RMD for 2023. The RMD age changes again in 2033 from 73 to 75.
SECURE 2.0, effective for distributions made after December 31, 2022, increases the RMD age to 73 for those IRA owners (including SEP and SIMPLE, but not Roth IRAs) who turn 72 after December 31, 2022. In other words, if you turn age 72 in in 2023 or later, a minimum distribution is not required until the year you turn age 73. However, if you turned age 72 in 2022 or earlier, you are required to continue taking your minimum distributions as before; there are no changes impacting individuals who reached RMD age prior to 2023.
For those individuals turning age 72 this year (2023), you will not have to begin taking RMDs from your IRA until next year, 2024, when you reach age 73. Therefore, a person’s first RMD is due for the year he or she turns 73, in 2024. There is no RMD for 2023. Thus, the deadline for taking your first (initial) RMD would be April 1, 2025.
Example: Anthony will be celebrating his 72nd birthday on April 2, 2023, and has a traditional IRA. Due to SECURE 2.0 pushing the RMD age to 73, he can delay his RMD from his IRA for another year (2024). Anthony will now have to begin taking RMDs for 2024 when he reaches age 73. Anthony’s first RMD, for 2024, can be delayed until April 1, 2025, but then he will need to take two RMDs in 2025—both the (delayed) 2024 RMD and the 2025 RMD, which is due by December 31, 2025.