On Dec. 29, 2022, President Joe Biden signed the Consolidated Appropriations Act, 2023 (H.R.2617) into law.
Included in the bill is a retirement package known as the SECURE 2.0 Act of 2022. SECURE 2.0 increased the age at which individuals must begin taking RMDs from their retirement account from 72 to 73, starting on Jan. 1, 2023.
You must start taking RMDs by April 1 of the year after you turn 73. You will celebrate your 73rd birthday in April 2024. Thus, you must take the first RMD by April 1, 2025 (for 2024). You’ll have to take another RMD (for 2025) by Dec. 31, 2025, and by Dec. 31 each year thereafter. The other option is to take your first RMD in 2024, the year you turn 73 and then by Dec. 31 each year thereafter.
so you have to see which is a better option since doubling up on the RMD in one year can push you into a higher tax bracket.
