Minimum Required Distributions
Presently, the MRDs have to start when a person turns 72. Is there any truth to the rumor that 72 years old may be revised to 75 years old?
Thank you, Dr. John Chino
As I understand it, the bill provisions increase the age to 75. but not immediately. One version increases to 73 in 2022, 74 in 2029, and 75 in 2032. The increase schedule can be negotiated as the proposed bill progresses.
You are correct. The bill passed on May 5 by the House Ways and Means Committee and sent to the entire House contains the staggered increase in age you describe above.
The original Secire 2.0 Act sponsored in a nonpartisan way by Cong. Neal and Brady in Fall 2020 simply replaced age 72 with 75 in the code. The Ways and Means Committee bill changes from last week has this confusing and unnecessary staggering of age increases starting next year and for the next few years making the RMD age 73. Then eventually they get to a change in RMD age to 75 in TEN years. This doesn’t do much for anybody. Why not stick with the original 75 effective THIS year and encourage continued retirement saving in a meaningful way? I can speak as a strong advocate of this as I turn 72 this year . :).
Permalink Submitted by NICHOLAS PUGLISI on Sun, 2021-05-09 04:30
yes. There is a new Secure Act Bill circulating through the House. One of the provisions would raise the age to begin RMDs from 72 to 75. Appears to have bi-partisan support.