With the Secure Act 2.0, raising the age to start RMD in 2024 to age 73, I still need to know how to prepare for tax liability since I turn 73 in May 2024?

[masterredfox]

I am trying to avoid a double RMD distribution in the first year, I turn 73 in May 2024 but I haven't received clear information on how to start the dispersal because the Secure Act keeps raising the age since I turned 70 in 2021 because of the Secure Act. Having a birthdate in the middle of the year changes the when but also makes it more liable to 2 dispersals in same year because everything is based on the tas year filing dates. (April to March). versus the regular year January to December. I called the fidurary where my 401 is last year 2023, right after I turned 72 and found that the Secure Act 2.0 upped the age again to 73 which applied to everyone born after January 2023's cutoff date. Did the age go up again in 2024 to start RMD?

[DaveF1006]

The mandatory retirement age increased to 73 as of 1/1/2023. It increases to age 75 starting Jan 1, 2033 so there should be no changes until then.  There is no age increase for year 2024.

[VolvoGirl]

What do you mean tax filing dates April to March?  Your tax return and RMD are calendar year Jan - Dec 31.  It's just that you can take your first RMD until April 1 of the next year.  So you would then have to take 2 RMD if you wait.  So take the first RMD by Dec 31 this year 2024.  

[masterredfox]

So the age to start the first RMD did not rise to a higher age for this 2024 year. I am asking this because last year in January 2023, it was 72 but when I turned 72 in May 2023, the age had been changed to 73. Logically it makes sense to work the year from January to December but the Secure Act 2.0 has an obscure notation on how it breaks down the birthdate year based on a different calendar which is how RMD are decided and dispersed, especially the first dispersal . I was told that it is decided during the time of the last quarter of the year (between October through December) and is dispersed the following March of the next year. After the first dispersal then you can decide when you want to receive the RMD after that. Can you clarify?

[masterredfox]

Thanks, that's what I needed clarified, that the minimum age was not going to change up in age again in 2024. I have been dealing with this rising age movement which has delayed my RMD for the last 3 years because of the Secure Act 2.0. It is not as if I am still working and earning enough to put more money into the account, which I would have if I was working.