On Tuesday, the House passed Secure Bill 2.0 which includes raising the RMD, requirement minimum distribution, age from 72, in steps, up to 75. The RMD effectively causes retirees to take taxable distributions, whether they need the money or not. It effectively causes retirees to pay higher taxes while reducing the amount of saving in tax deferred retirement accounts.
From the Barron's article:
"Key provisions of the House bill passed Tuesday include:
● Raising the age at which seniors must take required minimum distributions, or RMDs, from their retirement savings accounts to 73 from 72, effective next Jan. 1. The bill will raise the age to 74 starting in 2030 and to 75 starting in 2033."
This provision would benefit many retirees and help them keep funds needed for retirement rather than pay taxes on funds they don't yet need.
This is not financial, tax nor retirement advice. Please consult a professional advisor.
Copyright © 2022 Achievement Catalyst, LLC
Subscribe to My Wealth Builder
No comments:
Post a Comment