The Internal Revenue Service (IRS) has issued new guidance providing transitional relief related to recent legislative changes to the age at which taxpayers must begin taking required minimum distributions (RMDs) from retirement accounts. The guidance in IRS Notice 2023-54 also extends relief already granted to taxpayers covered by the so-called “10-year rule” for inherited IRAs and other defined contribution plans.
In late 2019, the Secure Act brought numerous changes to the retirement and estate planning landscape. Among other things, it generally raised the age at which retirement account holders must begin to take their RMDs. The required beginning date (RBD) for traditional IRAs and other qualified plans was raised from age 70.5 to 72.
Three years later, in December 2022, the Secure Act 2.0 (also referenced as SECURE 2.0) increased the RBD age for RMDs further. This year, the age increased to 73, and it’s scheduled to climb to age 75 in 2033.
Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett.