What: SECURE 2.0 includes a provision that changes the age at which a person must take a RMD from their applicable account(s).
Action Required: Ensure RMDs are taken when required based on age.
Key Dates: This change is effective for RMDs made after 2022 for participants who turn age 72 after 2022.
Impacted Audiences: Participants with a 401(a) defined contribution plan (including the DC portion of a hybrid plan), 401(a) defined benefit plan, 457(b) plan and/or IRA. Please note that the plans listed here are specific to those MERS offers. Other account types are impacted by this RMD change and you should check with your provider to ensure compliance.
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Required minimum distribution (RMD) age changes
Increases the required minimum distribution (RMD) age from 72 to 73 for individuals who attain age 72 after January 1, 2023, and age 73 before January 1, 2033. Further, there is a subsequent increase to age 75 for any individual who did not attain age 74 prior to January 1, 2024. These increases also apply to surviving spouse distributions.
Here is a summary of the provision:
- For employees who turned age 72 before 2023, the applicable age is age 72 (or age 70½ if they were born before July 1, 1949)
- For employees who will turn age 72 after 2022 and age 73 before 2033, the applicable age now is age 73
- For employees who will turn age 74 after 2032, the applicable age now is age 75
These changes are effective for RMDs made after 2022 for participants who turn age 72 after 2022.
NOTE: An issue was identified related to new RMD rules for those born in 1959. The IRS is working on clarification.
More information: MERS SECURE 2.0 Resource Page