RBD Pushed Back?
Retirement Account Required Minimum Distribution Rules Catch Many by Surprise
Excerpt: “There’s some sentiment that a government rule that forces retirees to withdraw money from their IRA and 401(k) accounts when they turn 70 1/2 may need to be changed. That’s because people are living longer and need to keep as much of their retirement money for as long as possible, said several financial advisers and a leader of the Senate Finance Committee.” (AP via The New York Times; free registration required)
Permalink Submitted by Denise Appleby on Thu, 2008-09-04 19:07
Sure 🙄 That would mean that the IRS would have to wait longer to get their income taxes from those distributions. I don’t think so, unless they can find another source of revenue.
Permalink Submitted by Al Fry on Thu, 2008-09-04 20:06
Depends on who the new administration is.
Permalink Submitted by Alan Spross on Thu, 2008-09-04 23:02
Actually, it has only been since 2001 when the present mortality tables used to construct the RMD tables in Pub 590 were adopted. Those new tables themselves provided considerable additional deferral of retirement funds.
If deferral were increased again, it would make sense to restrict it to those still working rather than everyone. But that would add considerable complexity to RMD administration since many will be working off and on after 70, and that presents a problem.