IRA change to 72 for rmd
When is the rule for RMD’s to change to 72 instead of 701/2?
If someone is taking it now can they stop until they turn 72 and save a year of RMD distribution?
Thank you
Douglas
When is the rule for RMD’s to change to 72 instead of 701/2?
If someone is taking it now can they stop until they turn 72 and save a year of RMD distribution?
Thank you
Douglas
Permalink Submitted by Alan - IRA critic on Mon, 2019-06-17 23:01
A 72t (SEPP) plan will always start prior to 59.5 and automatically ends at the later of age 59.5 or 5 years from the date of the first distribution. Therefore, no such plan would ever run until RMDs begin. If the taxpayer continues to take the same distribution after the plan ended as before, it would not affect the plan but might draw down the IRA balance unnessarily. Once the plan automatically ends, the taxpayer is free to stop the distributions or to change them in any way.
Permalink Submitted by David Mertz on Mon, 2019-06-17 23:17
I think the question is about H.R. 1994, passed by the House and is now in the Senate. The current wording would have RMDs begin with the year one reaches age 72 for those reaching age 70½ after December 31, 2019. Those reaching age 70½ in 2019 or earlier would be unaffected by the change and would have to continue taking their yearly RMDs as they are already doing. But as is stands presently, there has been no change to the law requiring RMDs to begin with the year one reaches age 70½.
Permalink Submitted by Alan - IRA critic on Tue, 2019-06-18 04:12
Yeah, I answered a question that probably was not asked.