Likelihood of SECURE 2.0 2021 Passage?
We are performing Roth conversions to get wife’s IRA under $100K and I will reach age 72 in 2022.
I had read that SECURE 2.0 has rare bipartisan support and seem to recall that SECURE 1.0 was passed in the final days of a previous December.
Does anyone here have an informed opinion as to whether they will get this done in 2021?
Timing of passage means a lot to us.
Thanks
Michael
Permalink Submitted by Alan - IRA critic on Tue, 2021-11-23 15:58
The consensus seems to be that this will pass in some form, but predicting when and what modifications will be made is something no one wants to predict. As we know, Congress tends to pass much tax related legislation in December, and when it comes to retirement plans, administrators need time to program their systems for the changes. It appears the latest version would have the RMD age go to 73 in 2022, but not go to 74 until 2029, which means that in your case, your RMDs would start in 2023 when you turn 73. It’s not clear if backing off many tax increases in the BBB bill means that Secure’s 2.0 delay of RMD tax revenue will be a problem or not.