I am confused on this as I saw an answer on this forum indicating the starting age is still 72 for RMDs. But I have read many articles recently indicating Congress passed legislation in late '22 changing the starting age to 73 for anyone turning 72 in 2023 or later. Is this correct?
I will be 72 in Sept of this year, 2023 so my understanding is my first RMD would be in tax year 2024 (or by April of 2025 but then I have to take 2 distributions in '25).
Is this correct information?
Beginning in 2023, the SECURE 2.0 Act raised the age that you must begin taking RMDs to age 73. If you reach age 72 in 2023, the required beginning date for your first RMD is April 1, 2025
Go to this IRS website for information on RMD's - https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs
As an addendum to that mentioned earlier and to your very pointed question, If you wait until April 1 of 2025, you will be required to make two withdrawal from your IRA for that year. The law says that the distribution should be made by December 31 of 2024 but allows an extension to April 1 of 2025.
In essense, you will miss the RMD for 2024 by extending and now is forced to also take the RMD for 2025. This will certainly require you to pay more tax overall as the withdrawals will move you to another tax bracket.
One benefit of taking the full amount of the RMD in December of each year will allow the total amount of funds in the account to grow through the interest earned and thus will insure a higher total in the account overall!
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