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The SECURE Act's New Required Minimum Distribution Rules

The SECURE Act's New Required Minimum Distribution Rules

| January 07, 2020

The SECURE Act provides some disappointing news for those hoping to defer their RMDs to 72 who are in their early 70s. As most of the commentary read, RMDs "are not required until age 72" and early hope was for the option of new RMD takers to stop or skip their age 71 RMD and pick back up at age 72... however, this new rule is only for those who did not reach age 70 1/2 in 2019. Yes, this new required beginning age from taking withdrawals from your qualified accounts (most qualified accounts) does not apply for those with a birthday of June 30th  1949 or earlier. In that case, you are under the old 70 1/2 rules and have to take your RMDs as your normally would..if you are July 1st 1949 or later, you would be under the new age 72 required beginning date rules. 

How about if you delayed your first RMD until April 1sof this year? Well, you are still required to take your RMD for 2019 by April 1st of 2020 as well as your 2020 RMD by December 31st of 2020.

We will continue to write about these new rules as they come out-  as always, please consult your tax advisor/CPA before acting on tax matters as this new SECURE Act's interpretation is a work in progress.