New retirement withdrawal rule could backfire in costly way

Monday, January 16, 2023

News & Press

A new law increasing the age you must withdraw from your retirement accounts may come with some unexpected and expensive consequences.

Retirement legislation President Biden inked in December pushes the age that retirees must start taking required minimum distributions, or RMDs, from IRAs, 401(k)s, and 403(b) plans, to 73 this year, up from 72. That will bump up higher to age 75 in 2033. The delay allows investments to grow tax-free even longer and offers a window to sock more tax-deferred dollars away.