Ask Terry Questions IRA RMDs –new rule?

IRA RMDs –new rule?

By Terry Savage on January 12, 2020 | Financial Planning / Retirement

Hi, Terry. Happy New Year. I just turned 70 this past fall and was planning to take out my initial RMD from my IRAs by this coming April which I had read was the rule. Today i read an article (The Motley Fool) that stated the rule has been changed: “If you’re the original accountholder, then you’ll need to start taking withdrawals in the year in which you turn 72 years old. Those who’ve just turned 72 in a given year have until April 1 of the following year to start taking their required minimum distributions.” Is this correct and can I put off my RMDs for a couple of years? Thank you.

Terry Says

Gosh, you’re sliding in just under the wire! Yes, there is a new rule change on IRA RMDs. The RMD rules do not kick in until age 72 for account owners who attain age 70 1/2 after 2019. So since you will be 70–1/2 in April 2020 you can delay your first distribution until April 1 of the year after you reach age 72! That gives your IRA more time to grow tax-deferred. Of course, if you need the money, you can always take it out earlier!

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