I see the new age for RMDs is 73

[bada bing]

For me it will be 75.

Does anyone know the reasoning behind the change?

Prelude to pushing FRA out to 70 ?
Nah, too much forethought.

 

[Sunset]

Well I like it, and am glad OP mentioned it as I wouldn't know and might have found out later.

Would also be nice if IRMMA wasn't such a cliff, but more of a slope. Currently I'm afraid of the $1 over the line issue, so I stay far back and still hope...

 

[skipro33]

Forbes says longevity too as well as the risk cost of retirement - a play I guess on higher inflation.

Every actuarial table I've seen recently shows we Americans are dieing sooner, not later.
Blame is placed on both COVID and Fentinyl.

 

[Global Wizzo]

Screwed

Those of us that had to start the year before the rules changed, just got screwed. No way to delay.

 

[audreyh1]

Those of us that had to start the year before the rules changed, just got screwed. No way to delay.

The new rule never applied to folks who turned 72 in 2022, so how do you figure you got screwed? Because they didn’t come up with the rule change in 2021?

 

[Midpack]

I'm another 1959 baby. But I'm not going to worry about it until 2032.

I have to assume they’ll correct the 1959 discrepancy before it actually hits, hopefully long before for planning purposes.

 

[Time2]

I have to assume they’ll correct the 1959 discrepancy before it actually hits, hopefully long before for planning purposes.

You mean you want them to rush into fixing that like they are rushing into fixing SS?

 

[audreyh1]

I have to assume they’ll correct the 1959 discrepancy before it actually hits, hopefully long before for planning purposes.

Unfortunately our local tax expert friend here on this forum Cathy, also quoting Kitces on the topic, believes that any correction will clarify that it’s 73 for us 1959 babies - so basically no difference. At least we get 1 more year.

 

[Doc0]

The way it's going, at some point we'll be dead before beginning RMD. Age 75 is only 15 years from 90.

 

[RunningBum]

Those of us that had to start the year before the rules changed, just got screwed. No way to delay.

How much $ do you think you got screwed? Eventually you or your heirs are going to pay all of the deferred tax. You could have delayed it 1 to 3 years, but it would (probably) grow more and cause more taxes. Or you could have converted some to a Roth in place of the RMD. Would you have done that? This would protect any additional gains from being taxed, but so would step up basis if you never used the distributed funds.

If you planned to give any of it away you could already be doing QCDs so that's not a factor.