SECURE Act for someone who turns 70.5 in 2019
Hello,
If the SECURE Act as is currently worded is passed into law in 2019, I am wondering how it would effect an individual who turns 70.5 during 2019? I have read:
“Effective dates: Effective for distributions required to be made after December 31, 2019, with respect to individuals who attain age 70½ after such date, and distributions for employees who die after December 31, 2019.”
This makes me think that an individual who turns 70.5 in 2019 would still have to take RMDs according to the current rules in 2019 and 2020. This person would not be able to delay until 72. Is my understanding correct?
Basically I am wondering if someone who turns 70.5 in 2019 would be at all effected by the RMD change to age 72?
Thank you very much,
Ann Minnium
Permalink Submitted by Alan - IRA critic on Tue, 2019-07-30 21:45
You are correct. Individuals turning 70.5 in 2019 will not be affected under these provisions. In parsing this wording, the effect of the RBD is ignored, only the RMD distribution year matters. In addition, if the legislation is not signed by year end, it is likely that those reaching 70.5 in 2020 will also not benefit from any delay in the start of their RMDs. If any such provision was made retroactive, there would have to be a method of rolling back those RMDs in order to be equitable to those who have already taken out that year’s RMD.