Any news on RMD age change to 75 yet

[audreyh1]

The way I look at it, they'll just require larger withdrawals (and taxes) to be paid whenever RMD's are started at later years.

My RMD's are slated to start next year, and I'll have to withdraw more than my annual personal expenses. And I'll also have to start paying state income taxes too. The RMD's are going to kick us up into a higher tax bracket anyway.

I assume we'll just reinvest much of the RMD's elsewhere.

I think it’s very likely they will continue to use the same tables which are based on life expectancy. Yes, if you start later you take out a bit more. They didn’t include new tables to further accelerate withdrawals for those starting later.

If it passes as is, you’ll get to wait one more year.

 

[Koolau]

Heh, heh, I've been chasing the age since this all started during the pandemic. Apparently, I missed it on the first go-round and not sure I'll be eligible for the age 75 (since I'll turn 75 next year.)

I guess the "good news" is that due to BTD (primarily on charities) I've become addicted to taking RMDs (and then some) recently. Good news/bad news - the 401(k) keeps getting BIGGER anyway! Yeah, I know, 1st world problem.

 

[street]

Doesn't seem to have any new news on this bill yet. Anyone have knowledge of when they might address this Bill?

 

[skyking1]

Heh, heh, I've been chasing the age since this all started during the pandemic. Apparently, I missed it on the first go-round and not sure I'll be eligible for the age 75 (since I'll turn 75 next year.)

I guess the "good news" is that due to BTD (primarily on charities) I've become addicted to taking RMDs (and then some) recently. Good news/bad news - the 401(k) keeps getting BIGGER anyway! Yeah, I know, 1st world problem.

Those are the best and in this case, your mileage just went up and up.

 

[cathy63]

Doesn't seem to have any new news on this bill yet. Anyone have knowledge of when they might address this Bill?

There is no news on the House's SECURE Act 2.0 or the Senate's version (Retirement Security and Savings Act of 2021). They seem to be pretty busy right now with debt ceilings and budgets right now, so who knows when or if anything will happen on these bills.

Note that the House version raises the RMD age to 75 by 2032. The Senate version doesn't include this provision at all, but it does eliminate RMDs for anyone with less than $100K in retirement savings. Nobody knows what will be left after the reconciliation process between these bills.

Also, Ways & Means has been working on a lot of other changes to retirement accounts, such as disallowing conversion of after-tax contributions from tIRAs and 401ks to Roth IRAs. These other changes might end up taking priority over the SECURE 2.0 changes, or they might all get wrapped up together via amendments and reconciliation, or they might end up in some other omnibus-type bill.

 

[street]

There is no news on the House's SECURE Act 2.0 or the Senate's version (Retirement Security and Savings Act of 2021). They seem to be pretty busy right now with debt ceilings and budgets right now, so who knows when or if anything will happen on these bills.

Note that the House version raises the RMD age to 75 by 2032. The Senate version doesn't include this provision at all, but it does eliminate RMDs for anyone with less than $100K in retirement savings. Nobody knows what will be left after the reconciliation process between these bills.

Also, Ways & Means has been working on a lot of other changes to retirement accounts, such as disallowing conversion of after-tax contributions from tIRAs and 401ks to Roth IRAs. These other changes might end up taking priority over the SECURE 2.0 changes, or they might all get wrapped up together via amendments and reconciliation, or they might end up in some other omnibus-type bill.

That was a great update and better then anything I could find. Thanks!!

 

[Koolau]

That was a great update and better then anything I could find. Thanks!!

Heh, heh, looks like I'll be another day late and dollar short. Oh well. I can use the money. YMMV

 

[RobbieB]

I've been pulling my first year RMD amount every year since I was 61. Yup, it keeps getting bigger.

Both the account and the amount -

 

[Koolau]

I've been pulling my first year RMD amount every year since I was 61. Yup, it keeps getting bigger.

Both the account and the amount -

We are CURSED with those third world problems, thank God!