At what age does RMD stop? | Annuity Watch USA (2024)

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At what age does RMD stop? | Annuity Watch USA? ›

At what age do RMDs stop? Simply put, they don't! Once you start taking RMDs, there is no stopping age. You must continue making withdrawals each year, even if you don't need the income.

Required minimum distributions (RMDs) are the minimum amount that you must withdraw from certain tax-advantaged retirement accounts. They begin at age 72 or 73, depending on your circ*mstances and continue indefinitely. There is, unfortunately, no age when RMDs stop.

However, for 2024 and later years, RMDs are no longer required from designated Roth accounts. You must still take RMDs from designated Roth accounts for 2023, including those with a required beginning date of April 1, 2024. You can withdraw more than the minimum required amount.

One major development was an increase in the age at which people must start taking their RMDs from 70½ to 72. In December 2022, the SECURE 2.0 Act further increased the required age for RMDs to 73 if you turn 73 between 2023 and 2032. The age is scheduled to climb to 75 in 2033, making it a moving target.

New for 2023: The Secure 2.0 Act raised the age that account owners must begin taking RMDs. For 2023, the age at which account owners must start taking required minimum distributions goes up from age 72 to age 73, so individuals born in 1951 must receive their first required minimum distribution by April 1, 2025.

If you are taking RMDs and collecting Social Security benefits, the RMDs will not impact the amount of your benefits—but it could impact how much of your Social Security benefit is taxable. The amount your Social Security is taxed depends on your annual income. RMDs may increase your taxable income.

If you don't need to use your RMD from your IRA for living expenses, then you can reinvest them in a Roth IRA. The fund you use to contribute to a Roth IRA can come from any available source. However, you must be careful and adhere to the contribution limits and earned income requirements when making contributions.

If you're at least age 59½ and your Roth IRA has been open for at least five years, you can withdraw money tax- and penalty-free.

For investors who plan to use their RMDs as a source of retirement income, a monthly payment may be a good choice. Keep in mind that while you'll pay the same amount of income tax no matter when you receive the money, delaying your RMD until year-end gives your money more time to grow tax-deferred.

RMDs might affect taxes. Missing a withdrawal may result in penalties. The qualified charitable distributions limit increased in 2023. There are no RMDs for Roth 401(k)s in 2024.

Is RMD changing to 74? ›

Required minimum distributions pushed to age 73

Secure 2.0 increases the age at which RMDs begin to age 73 for those individuals who turn 72 on or after January 1, 2023. Notably, an individual who attains age 72 in 2023 is not required to take an RMD for 2023. The RMD age changes again in 2033 from 73 to 75.

The Setting Every Community Up for Retirement Enhancement Act of 2019 required that certain beneficiaries of a deceased individual retirement account owner or plan participant must draw down their assets within 10 years of receiving those assets—as opposed to their “applicable” life expectancy.

Age when RMDs are first required

There is a two-step process under the SECURE 2.0 Act for increasing in the age when RMDs become necessary. Step 1: Beginning in 2023, the age to start taking RMDs jumped from 72 to 73. Step 2: Beginning in 2033, it creeps up again to 75.

You generally have to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account when you reach age 72 (73 if you reach age 72 after Dec. 31, 2022). Roth IRAs do not require withdrawals until after the death of the owner; however, beneficiaries of a Roth IRA are subject to the RMD rules.

If the sole beneficiary of the account is a spouse, enter the beneficiary's birthdate. If the spouse is more than 10 years younger than the account owner, the IRS joint life expectancy table is used which normally produces lower required distributions.

IRA contributions after age 70½

For 2020 and later, there is no age limit on making regular contributions to traditional or Roth IRAs. For 2019, if you're 70 ½ or older, you can't make a regular contribution to a traditional IRA.

They apply to employer-sponsored retirement accounts as well as individual retirement accounts (IRAs). RMDs start at a specific age, determined by your birthdate, but you might wonder at what age RMDs stop. Simply put: They don't. They continue indefinitely.