New RMD Rules

A few weeks ago, a faithful reader pointed out that our financial checklist did not have updated information regarding Secure Act 2.0s changes to the starting age for taking your Required Minimum Distributions. We apologize for this oversight and want to set the record straight this week.


The new bill changed the age that you have to start taking RMDs to 73, effective in 2023. Furthermore, it said that in 2033 that age will move again to 75.


In layman’s terms is this means:

If you have already had to start taking RMDs, keep doing what you’re doing. Nothing changes for you.

If you were born from 1951 to 1959, you don’t have to take RMDs until age 73 now.

If you were born in 1960 or later, you don’t have to take RMDs until age 75.


These age changes do cause some odd years like this year where nobody has to start taking RMDs. Everyone turning 73 this year turned 72 last year. And if you were turning 72 this year, you don’t have to start until next year when you’re 73.


The bill also eliminated RMDs for Roth 401(k) accounts starting in 2024, which most people probably didn’t even know were a thing.


I don’t know what has gotten congress so excited about changing IRA rules the last few years, but they certainly have had a field day. This is the latest and we’ll let you know next time they switch everything around again.