SECURE ACT withdrawal rules | Ed Slott and Company, LLC

SECURE ACT withdrawal rules

Please clarify these situations under the new SECURE act for traditional IRA withdrawals

1. Person age 73 on May 2020. Does he continues using his RMD factor under the old rules.
2. Person becomes age 72 in May 2020. He needs to start RMD. What factor does he use?
3. Are the RMD factors table the same under SECURE ACT as before. Just that the withdrawal
required by RMD age changes from 70.5 years to 72 years?
4. Does the old rule apply that if you become 72 in May 2020 you have until Apr 15 2021 to take your
initial RMD

  1. Yes. Secure does not affect this person. There is expected to be new tables introduced in 2021, but that is separate from the Secure Act, and will reduce RMDs a little due to longer mortality expectations.
  2.  This person was subject to RMDs for 2018 and 2019 if he had an IRA then. But perhaps he rolled over an employer plan to an IRA last year, so 2020 will be the first year he will have to take an IRA RMD. His 2020 RMD divisor will be 25.6 unless his spouse is more than 10 years younger than he is.
  3. Yes, see # 1 above.
  4.  No. For someone reaching 72 in 2020, their IRA RMDs started in a prior year. The 2020 RMD must be distributed by 12/31/2020. The delay of RMDs to 72 does not affect anyone who reached 70.5 by 12/31/2019 and this person falls into that category. 

April 1 NOT April 15


Find members of Ed Slott's Elite IRA Advisor GroupSM in your area.
We neither keep nor share your information entered on this form.

I agree to the terms and services:

You may review the terms and conditions here.