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Thinking about retirement? Your RMD age probably changed.

What is an RMD (Required Minimum Distribution)?

If you know this already, please skip to the next section.

RMDs (Required Minimum Distributions) are distributions that Uncle Sam (the IRS) requires you to take out of certain retirement accounts, specifically tax-deferred retirement accounts.

These accounts gave you a tax benefit when you deposited money into them (Traditional IRA, Traditional 401(k), SIMPLE IRA, just to name a few).

Although you received the tax benefits initially, you’ll still need to pay the piper. When you withdraw monies from these accounts, it’s treated as income, and you’ll pay income taxes on the funds withdrawn.

However, some can wisely spend out of different accounts, pull little from the tax-deferred accounts, and then pass on the money to heirs without paying much in taxes. Sounds great, right?

Not so fast - in order to get money into the government coffers, citizens are required to withdraw a certain amount from their tax-deferred retirement accounts once they reach a certain age (which we’ll discuss below), thus, forcing you to pay taxes.

This is the RMD.

When do I need to begin taking my RMD?

For over 30 years until 2019, the RMD age was 70 ½. In 2020, this changed to 72. Thanks to SECURE ACT 2.0, it’s been pushed back again and depends on your birth year. See below:

Birth Year


1950 or Earlier

72 (70.5 if aged 70.5 prior to 2020)



1960 or Later


RMDs must be taken by April 1st of the year after you turn the RMD age, but then RMDs are due by 12/31 each year thereafter, including the year you may have delayed payment until April 1st.

Note: if you turned 72 in 2022, you’d still need to take your RMD by April 1st, 2023.

Is this GOOD or BAD?

For most people I work with, pushing back the RMD age has been a net positive for them financially. We now have more flexibility on when to take distributions and are not forced to pay taxes in a year when they may not need the money or could be in a high tax bracket.

There are many other considerations with RMDs, such as how they impact Social Security and Medicare, or even how to calculate the RMD amount, but that’s a topic for another article.

And like everything tax law related, it was written in pencil and may change.

If you know someone approaching retirement who enjoys saving money on taxes, feel free to give this a share.


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Some Sources and further reading:

The Legislative Bill changing RMDs (scroll to page 2,000 for the SECURE 2.0 ACT):

Risk Disclosure: Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results.

This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding the accuracy, adequacy, completeness, legality, reliability, or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.


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