New legislation affecting retirement plans and specifically required minimum distributions (RMDs), was signed into law in December of 2022. For individuals turning 72 years of age on our after January 1, 2023, the starting age for RMDs is now 73 (up from 72). Penalties for missed or late RMDs have been reduced from 50% to 25% of the amount of the RMD not taken, starting in 2023. If the missed or late RMD is corrected in a timely manner, the tax is reduced from 25% to 10%. While this seems simple enough, the legislation is lengthy and specific. Speak with your attorney regarding Secure 2.0.
-Emily A. Helmick, Esq.