There still seems to be confusion among retirees about the changes in the law affecting required minimum distributions, or RMDs.
Beginning a few weeks ago, on January 1, 2023, the starting age for RMDs rose from 72 to 73. The new version of the Secure Act will eventually increase the RMD age to 75, in 2033. Pushing back the age for RMDs can be viewed as a benefit for those who can afford to hold off taking distributions as it affords them more time for their retirement savings to grow. Note that if you turned 72 in 2022 (or earlier) you will still need to continue taking your RMDs as you did in the past, but if you’re turning 72 in 2023 you can choose to wait an extra year.
This also means you may need to reach out and change any automatic withdrawals you set up in advance so that you can now hold off on them. Call us if you’d like to discuss your options in greater detail, or if you need help in sorting through the changes. We’re always here to help.