August 20, 2021
One of the major changes made by the SECURE Act in 2019 was raising the age at which required minimum distributions (RMD’s) begin, from 70.5 to 72. While delaying the starting age may seem like a positive change to many, there are financial advisors and tax experts who would rather see this law repealed. Instead of eliminating minimum distributions altogether, the government has continued to mull the idea of delaying the starting age even further, which could negatively affect individuals. The longer one waits to withdraw from retirement accounts, and the larger those accounts grow, the larger the RMD will become. Those who do not necessarily need the money to live comfortably, may then end up having to pay a much larger tax bill than anticipated in retirement each year thereafter. If you are approaching retirement with significant savings and do not have a concrete RMD plan in place, reach out to us today! We have some ideas to help you reduce the tax bill that is coming. The earlier a plan is put in place, the more prepared you will be to tackle required distributions.
Carol Dixon, CFP® & Kevin DeRosa, CRPC®