Changes are on the horizon regarding required minimum distributions (RMDs), but are not here quite yet.
The IRS has issued a reminder that it may be necessary to take an RMD from an IRA or other retirement account by the end of 2019:
- If one is at least age 70½ this year, or
- If one has inherited an IRA or retirement account.
These rules apply for the 2019 tax year.
The SECURE Act
The SECURE Act, enacted on Dec. 20, does affect RMDs; however, it does not affect them for the 2019 tax year. If one is at least 70½ in 2019, one must take an RMD and is not allowed to make contributions to a traditional IRA for 2019 after age 70½.
The SECURE Act raises the age for RMDs to 72 beginning in 2020. It also removes the age limit for contributions to traditional IRAs beginning in 2020.
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