SECURE ACT
I have to take my first RMD in 2019 or by April 2020. If the SECURE act passes and increases the age to 72, would I be eligible to delay my RMD.
I have to take my first RMD in 2019 or by April 2020. If the SECURE act passes and increases the age to 72, would I be eligible to delay my RMD.
Permalink Submitted by Alan - IRA critic on Thu, 2019-07-04 17:55
I think any such provision would take effect in the year after the law was passed. That would allow time for affected parties to make the adjustments to all the changes and advise the taxpayers. The Secure Act and others have dozens of changes. For example, if this passed before year end, those who have reached 70.5 and 71 this year that have taken their RMDs would have to be given the opportunity to roll them back. Those that have done QCDs would also be negatively affected in a more complex manner. In your case you should plan for 2019 to be your first RMD distribution year and determine if you want to delay all or part of it to 4/1/2020. Then if it turns out that 2019 will not be your first RMD distribution year you can not take the distribution. If your birthday is in the second half of the year, you will still avoid an RMD for 2020 if this passes and becomes effective in 2020, which is far more likely. If your birthday is in the first half of the year, then 2019 will be the only year you could have avoided an RMD since you would then be 72 in 2020.
Permalink Submitted by William Richmond on Fri, 2019-07-12 15:15
This comes from the House Bill. Seems we would be stuck with the old rule unless we turn 70.5 after 12/31/19:d) EFFECTIVE DATE.—The amendments made by5 this section shall apply to distributions required to be6 made after December 31, 2019, with respect to individuals7 who attain age 701⁄2 after such date.
Permalink Submitted by Alan - IRA critic on Fri, 2019-07-12 16:11
Yes, correct. But if the bill does not get passed this year, they will probably have to change the start date to allow those who turn 70.5 in 2020 to be the first group to be able to delay the start of RMDs.