{"id":8767,"date":"2023-04-26T09:34:19","date_gmt":"2023-04-26T16:34:19","guid":{"rendered":"https:\/\/springwaterwealth.com\/?p=8767"},"modified":"2023-04-26T09:34:19","modified_gmt":"2023-04-26T16:34:19","slug":"did-the-secure-2-0-act-change-my-rmds-with-free-offer","status":"publish","type":"post","link":"https:\/\/springwaterwealth.com\/did-the-secure-2-0-act-change-my-rmds-with-free-offer\/","title":{"rendered":"Did the SECURE 2.0 Act Change My RMDs? – with Free Offer"},"content":{"rendered":"

Background<\/strong>
\nIn December 2022, Congress passed legislation that enhanced the 2019 SECURE Act. The enhancement – referred to by many as SECURE 2.0 Act – was signed by President Biden and enacted immediately.<\/p>\n

The law includes a number of significant provisions that will affect how Americans plan and save for retirement.<\/p>\n

We\u2019ve focused here on those aspects that affect Required Minimum Distributions (or \u201cRMDs\u201d) from retirement accounts.<\/p>\n

What Are RMDs?<\/strong>
\nSo what is an RMD? First, remember that all the money you contributed to your traditional 401(k) plan at work, or to your 403(b), SEP IRA or regular IRA, was done with pre-tax dollars \u2013 that is, income that you put into the account before you paid any tax on it to the IRS.<\/p>\n

The investment earnings on those salary deferrals or IRA contributions \u2013 interest, dividends, and capital gains \u2013 were also never taxed \u2013 they just continued to accumulate in your account over the years.<\/p>\n

But\u2026 the 401(k), 403(b), SEP IRA and IRA are not tax-free retirement accounts, they are tax-deferred accounts.<\/p>\n

So, after letting those contributions \u2013 and the income they earned \u2013 grow without tax \u2013 often for 40 years or more, the IRS wants to start collecting the taxes that it deferred. But they\u2019ve graciously allowed you to wait until you reach a certain age before doing so.<\/p>\n

An RMD<\/strong><\/a> is the minimum amount that the IRS requires you to withdraw from your retirement account each year after a certain age, so that they can tax it.<\/p>\n

And this is where the SECURE 2.0 Act comes into play – it changed the age at which you need to begin taking your RMDs.<\/p>\n

You can read about exactly how your RMDs are calculated here<\/strong><\/a>.<\/p>\n

When Do My RMDs Begin?<\/strong>
\nUntil the end of 2022, you were required to take your first RMD when you reached age 72. But beginning in 2023, that has been extended to age 73.<\/p>\n

Note that if you turned 72 in 2022 or earlier, you\u2019ll still need to continue taking your RMDs as originally scheduled. The age change doesn\u2019t affect you.<\/p>\n

And if you\u2019re turning 72 this year \u2013 2023 \u2013 and you\u2019ve already scheduled your RMD withdrawal, you may want to consider revisiting that plan and pushing the start date out to line up with the new rules.<\/p>\n

Finally, the Act further extends the age at which RMDs must begin to 75, beginning in 2033.
\n
\nCan You Delay Taking Your RMDs?<\/strong>
\nWe\u2019re frequently asked if there is a way to delay taking an RMD beyond the required beginning date. This makes sense, because in many cases the account owner doesn\u2019t need the RMD income, and delaying the distribution leaves the money in the account to continue to grow tax-deferred.<\/p>\n

The short answer to this question, though, is that you may be able to delay taking your RMDs from an employer-sponsored plan like a 401(k) or 403(b), if:<\/p>\n

–\tyou have a retirement account with the company\u2019s plan, and
\n–\tyou\u2019re still working for the company that sponsors the plan, and
\n–\tyou DON\u2019T own more than 5% of the company that sponsors the plan<\/p>\n

If you meet all of these criteria, you may be able to delay taking your RMDs from the plan until the year you retire.<\/p>\n

Note that if you\u2019re still working past age 72, but the RMD is for an IRA<\/strong><\/a>, then you cannot delay your start date for taking your RMDs.<\/p>\n

Importantly, if you don\u2019t take your RMD on time, there can be significant penalties<\/strong><\/a>. These can be as much as 25% of the amount that should have been distributed but wasn\u2019t.<\/p>\n

Still Confused?<\/strong>
\nIf all of the above still has you a bit confused, then we\u2019ve got a solution for you – a simple, easy-to-understand guide that will walk you step-by-step through the information that determines whether you can delay taking your RMDs.<\/p>\n

<\/p>\n

Get Your Free Guide to Delaying Your Required Minimum Distributions<\/strong><\/a><\/span><\/h2>\n

<\/p>\n

PLEASE SEE<\/strong> important disclosure information at www.springwaterwealth.com\/blog-disclosure\/<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Background In December 2022, Congress passed legislation that enhanced the 2019 SECURE Act. The enhancement – referred to by many as SECURE 2.0 Act – was signed by President Biden and enacted immediately. The law includes a number of significant provisions that will affect how Americans plan and save for retirement. We\u2019ve focused here on […]<\/p>\n","protected":false},"author":2,"featured_media":8769,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_mi_skip_tracking":false,"footnotes":""},"categories":[5,7,10],"tags":[13,14,88,118,119,121,132],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts\/8767"}],"collection":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/comments?post=8767"}],"version-history":[{"count":1,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts\/8767\/revisions"}],"predecessor-version":[{"id":8768,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts\/8767\/revisions\/8768"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/media\/8769"}],"wp:attachment":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/media?parent=8767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/categories?post=8767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/tags?post=8767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}