The Rule
Individuals who turn age 72 after December 31, 2022, AND who reach age 73 before January 1, 2033, have a compulsory RMD age of 73.
What It Means
Individuals who turn 73 during 2023 must take an RMD for 2023 by April 1, 2024, but individuals who turn 72 during 2023 do not have to take an RMD until 2024, the year they turn 73, which means they can wait until April 1, 2025.
IRS Notice 2023-23 provided clarification.
“Section 107 of the SECURE 2.0 Act amended section 401(a)(9)(C) to delay the required beginning date applicable to section 401(a) plans and other eligible retirement plans described in section 402(c)(8), including individual retirement accounts and annuities (IRAs).
- For an IRA owner who attains age 72 after December 31, 2022, and age 73 before January 1, 2033, the new required beginning date (that is, the date by which RMDs must begin) is April 1 of the calendar year following the calendar year in which the individual attains age 73, rather than April 1 of the calendar year following the calendar year in which the individual attains age 72.
- This amendment to section 401(a)(9)(C) is effective for distributions required to be made after December 31, 2022, with respect to individuals who will attain age 72 after that date.
- As a result of this amendment, IRA owners who will attain age 72 in 2023 (that is, individuals born in 1951) will have a required beginning date of April 1, 2025, rather than April 1, 2024.
The Secure 1.0 Required Beginning Date applies only through December 31, 2022.
RMDs continue for those in distribution status by December 31, 2022, but individuals who would have had to start taking RMDs during 2023 under SECURE 1.0 now get to wait one more year before taking their first distribution.
What Happens after 2032?
As of now, SECURE 2.0 increases RMD age to 75 for an individual who turns age 74 after December 31, 2032, but given that the rules have changed the Required Beginning Date (RBD) three times in the past 3 years, from 70 1/2 , to 72, to 73, let’s just hold that thought, but not hold our breath. Que Sera, Sera!
Read more about the SECURE Act 2.0 in Maria Hurd’s Blog Series
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- The SECURE 2.0 Act of 2022: Increased Retirement Savings; Enhanced Self-Correction of Operational Failures; Decreased Costs to Implement a Plan
- SECURE Act 2.0 Brings New and Improved Self-Correction Opportunities
- SECURE 2.0: Mandatory Automatic Enrollment Coupled with Corrective Contribution Relief for Automatic Enrollment Failures
- SECURE 2.0: New Distribution Options
- SECURE 2.0: Required Minimum Distributions – Do They Start at 72 or 73 for 2023?
- COMING SOON: Ongoing blogs will be posted
