You no doubt heard about the Secure Act, an unpleasant piece of legislation passed by Congress on their way out the door before Christmas break.
The law became effective on January 1, 2020.
What this means to you is that if you didn’t turn 70 ½ before Jan 1, then you don’t have to take your required minimum distribution (RMD) from your IRA until you turn 72.
Understand, if you’ve already begun taking your RMD prior to Jan 1, and are under age 72, you still need to keep taking it.
Also note, qualified charitable distributions (QCDs) from IRAs can still be made if you’re 70 ½ (up to $100,000) even if you are not required to take an RMD until age 72.
You’ll also want to keep in mind the IRS is reviewing a new life expectancy table that is expected to be effective sometime in 2021. Good news since life expectancies are on the rise, which may lower your RMD.
E.J. Smith - Your Survival Guy
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