The rules around Required Minimum Distributions (RMDs) have changed multiple times, leaving many retirees wondering: What is my actual RMD age? Is it 73 or 75?
If you have a tax-deferred account like a Traditional IRA or 401(k), the IRS requires you to start taking withdrawals at a specific age. While the RMD age used to be 70½, then 72, recent legislation has updated the timeline based on your year of birth.
To help clear up the confusion and simplify your Retirement Planning, here is the exact breakdown of the current RMD rules.
How to Find Your RMD Age:
– Born in 1959 or Earlier: Your RMD age is 73.
– Born in 1960 or Later: Your RMD age is 75.
Note: If you have already started taking your Required Minimum Distributions under previous rules, these new age guidelines do not allow you to recalculate or pause your current distribution schedule.
Understanding your timeline is a critical step in tax planning, as it helps you avoid steep IRS penalties and strategically plan your Retirement income.
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