Elimination of RMD for small accounts
Last year, I saw mention of proposed legislation which would eliminate RMD for retirement accounts with values less than $50K. I have not seen anything since. Is this likely to occur? Would the $50K limit apply separately to TIRA and 401k accounts?
Thanks for all you do.
Michael
Permalink Submitted by Alan - IRA critic on Tue, 2019-02-19 15:58
This was part of the Senate RESA proposal and also the House Family Savings Act, and both are back on Congress’ agenda now. There are many changes proposed, but that does not mean any particular one will be included even if the legislation actually passes. As proposed, the 50k limit applies to all owned retirement accounts combined per person. There is a much more complex proposal for drawing down inherited IRA accounts (impairing stretch provisions) that seem impractical given that the IRS has never been able to get a handle on inherited IRA RMDs with the simpler rules.