Born in 1959 – 2 First Year RMDs Under SECURE Act 2.0
Michael B. Giammatteo XPYRIA Team Insights
SECURE Act 2.0, Section 107 brought a delay in the Required Minimum Distributions (RMD)s age effective with January 1, 2023. RMDs move from 72 to age 73 now and in 2033 it will move to 75. For those turning 72 after December 31, 2022 and 73 before January 1, 2033 then your RMD will be at age 73. For those turning 74 after December 31, 2032 the RMD age moves to 75.
As a result, if you are born in 1959 the new rules created by Congress result in 2 first year RMDs. The first and second dates in the rule would both apply. So, which will be the IRS’ rule for you, RMD at age 73 (2032) or 75 (2034)?
This flaw in the rule will likely require a revision or a SECURE Act 2.1 update.
A reasonable change will move the age to those turning 73 after December 31, 2032 their RMD age would move to 75. This would eliminate the 2 RMD ages for those born in 1959.
Stay tuned for an update.