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What You Need to Know about the Secure Act and Your RMD

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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.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com