RMD’s under Securing a Strong Retirement Act
I am a retired CPA and have a question about the above bill that was recently passed by the House Ways & Means Committee. It appears that one of the provisions delays the required beginning date for RMD’s until age 75.
I have taken a couple of Ed’s webinars and recently purchased Ed’s latest book and received Sarah’s newsletter yesterday.
In 2021, I will be 74 and my wife 72. If this act becomes law, will we both be able to defer RMD’s for this year?
If so, it may be another year for QCD’s and Roth conversions!
Thanks for your help.
Permalink Submitted by Alan - IRA critic on Wed, 2021-06-09 22:49
This is not yet close to becoming law, but I believe the house bill provides for the RMD age to be 73 starting in 2022 and does not get to 74 until 2029 and 75 until 2032. If these provisions were passed into law this year then they would not affect either of your RMDs. Yours have already started and your wife will be 73 in 2022 and will have to start RMDs for the 2022 distribution year, although her required beginning date would become 4/1/2023.
Barring a crisis like the pandemic, IRA and qualified plan administrators need some lead time to re program their systems for changes effective the following January. The bill is therefore slated to not affect 2021 RMDs, but even for 2022 RMDs they would like to know by October what changes they will have to program into their RMD support systems.
2022 is also the first year for new mortality tables which will reduce RMDs by around 6% for most people. So even though it looks like neither of you will be able to hold off RMDs longer, at least they will be a little less with the new tables. The new tables have been released.