Any news on RMD age change to 75 yet

[street]

I couldn't find the old thread on committee bill that passed to change RMD to 75 from Way and Means Committee.

Does anyone know the status of this bill? When it is scheduled for discussion and vote etc.?

 

[TOOLMAN]

I couldn't find the old thread on committee bill that passed to change RMD to 75 from Way and Means Committee.

Does anyone know the status of this bill? When it is scheduled for discussion and vote etc.?

https://www.planadviser.com/secure-act-2-0-likely-become-reality/

 

[street]

TOOLMAN, thanks for that information/article. I searched for some updates and couldn't come up with anything. I appreciate that very much.

 

[Alan]

I couldn't find the old thread on committee bill that passed to change RMD to 75 from Way and Means Committee.

Does anyone know the status of this bill? When it is scheduled for discussion and vote etc.?

Some of the discussions here. (Search on "Secure Act")

https://www.early-retirement.org/fo...-affect-inherited-ira-from-2014-a-109036.html

https://www.early-retirement.org/forums/f52/secure-act-your-thoughts-101248.html

https://www.early-retirement.org/forums/f28/secure-act-2-0-a-106488.html

...and recent threads found by searching on "RMD"

https://www.early-retirement.org/forums/f28/new-rmd-tables-published-107807.html

https://www.early-retirement.org/forums/f28/how-to-calculate-2021-rmd-slott-108727.html

https://www.early-retirement.org/forums/f28/rmd-and-a-ss-question-107745.html

https://www.early-retirement.org/forums/f28/rmds-do-apply-to-inherited-iras-says-irs-109065.html

 

[street]

WOW thanks Alan! I was looking for that last thread on the new change but I bet you got it found in one of those.

Thanks Sir.

 

[Alan]

WOW thanks Alan! I was looking for that last thread on the new change but I bet you got it found in one of those.

Thanks Sir.

No problem.

I always use the Google search window on the site when looking for stuff.

 

[street]

Gotcha! Thanks Alan.

 

[street]

If a person born in 1956 in the second half of that year. What would be the required RMD year?

I do know that was discussed in one of those ER threads on Secure Act 2.0.

Thanks

 

[target2019]

If a person born in 1956 in the second half of that year. What would be the required RMD year?

I do know that was discussed in one of those ER threads on Secure Act 2.0.

Thanks

If the act is passed I had calculated that born 1956 would pick up 2 additional years.

But I'm leaving my estimates as is, until a signed bill becomes law.

 

[audreyh1]

If a person born in 1956 in the second half of that year. What would be the required RMD year?

I do know that was discussed in one of those ER threads on Secure Act 2.0.

Thanks

I think I answered that very question in one of those Secure 2.0 threads but couldn’t find it and barely remember.

Off the top of my head - 1956 I think you make it to 74 before RMDs are required. DH in 1955 gets stuck at 73. 1958 or later make it to 75.

 

[finnski1]

If a person born in 1956 in the second half of that year. What would be the required RMD year?

I do know that was discussed in one of those ER threads on Secure Act 2.0.

Thanks

I was under the impression that you have to take the RMD in the year that you turn 72 so that would be 2028 but it could be a the very end of the year say Dec 31st? I just turned 62 so have a decade to figure that out

 

[target2019]

IRS says:
https://www.irs.gov/retirement-plan...ions (RMDs) generally,which he or she retires.

The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) became law on December 20, 2019. The Secure Act made major changes to the RMD rules. If you reached the age of 70½ in 2019 the prior rule applies, and you must take your first RMD by April 1, 2020. If you reach age 70 ½ in 2020 or later you must take your first RMD by April 1 of the year after you reach 72.

Until something changes, I follow that rule. Of course it's confusing, and a simple calculator will spit out the correct answer for your situation.

 

[finnski1]

Just fond this on the CNBC website.
Under the House bill, those mandated annual withdrawals wouldn’t have to start until age 73 in 2022, and then age 74 in 2029 and age 75 by 2032. The Senate bill would raise the RMD age to 75 by 2032. It also would waive RMDs for individuals with less than $100,000 in aggregate retirement savings, as well as reduce the penalty for failing to take RMDs to 25% from the current 50%.
So I guess it would depend on which, if any, bill gets passed

 

[ERD50]

Does anyone know what the political motivation is behind raising the RMD age? I'm not complaining, I'll likely use it to do more tIRA/Roth conversions, but I'm curious what is driving this.

I'm not trying to get into any sort of political judgement/debate on this one way or the other, I'm just curious about the political mechanics/logistics/basis about why this is even being considered an issue that needs changing.

-ERD50

 

[REWahoo]

Does anyone know what the political motivation is behind raising the RMD age?

My guess: old folks vote.

 

[audreyh1]

Just fond this on the CNBC website.
Under the House bill, those mandated annual withdrawals wouldn’t have to start until age 73 in 2022, and then age 74 in 2029 and age 75 by 2032. The Senate bill would raise the RMD age to 75 by 2032. It also would waive RMDs for individuals with less than $100,000 in aggregate retirement savings, as well as reduce the penalty for failing to take RMDs to 25% from the current 50%.
So I guess it would depend on which, if any, bill gets passed

Right, 73 for everyone not already subject to RMDs starting next year.

To wait until 74 in 2029, you can’t turn 73 in 2028, otherwise you would be subject to the RMD already in 2028. So that means folks born in 1956 and 1957.

To wait until 75 in 2032, you can’t turn 74 in 2031 or again you have to start RMDs that year. So that means folks born in 1958 or later an wait until age 75. Which includes me!

 

[ERD50]

Quote:
Originally Posted by ERD50 View Post
Does anyone know what the political motivation is behind raising the RMD age?

My guess: old folks vote.

That's what I'm thinking, just not sure if there was anything else behind it. It seems a little out-of-step with what I read of the current political climate, but I better stop there before anyone gets on a soap box.

-ERD50

 

[finnski1]

Right, 73 for everyone not already subject to RMDs starting next year.

To wait until 74 in 2029, you can’t turn 73 in 2028, otherwise you would be subject to the RMD already in 2028. So that means folks born in 1956 and 1957.

To wait until 75 in 2032, you can’t turn 74 in 2031 or again you have to start RMDs that year. So that means folks born in 1958 or later an wait until age 75. Which includes me!

Me too

 

[Amethyst]

Only thing I can think of. That, and their share of the voting public is growing ever larger.

My guess: old folks vote.

 

[target2019]

Would be nice if politics and comments about politics are removed from the thread.

 

[Aerides]

Does anyone know what the political motivation is behind raising the RMD age? I'm not complaining, I'll likely use it to do more tIRA/Roth conversions, but I'm curious what is driving this.
-ERD50

Beside popularity with voters, the stock market tends to like this idea too, which means big businesses do, and the donor class. The individual voter likes it because, taxes. The market and big money like it because it keeps dollars invested vs. sold. Better for shareholders, etc...

 

[target2019]

I couldn't find the old thread on committee bill that passed to change RMD to 75 from Way and Means Committee.

Does anyone know the status of this bill? When it is scheduled for discussion and vote etc.?

street, this is the house bill:
https://www.congress.gov/bill/117th...54?q={"search":["secure+retirement"]}&s=5&r=1

Latest action 5/4/2021. There are related bills also.

 

[street]

Thanks for all the input and replies very much appreciated!

For I hope it passes I think I can benefit from this new law, by giving me more time for conversions.

Thanks!!

 

[ncbill]

Raise it to 90...hope to have my tIRA converted to Roth by age 60...let it grow longer tax-free for myself & my heirs.

 

[Bamaman]

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.