MASSIVE Changes to RMDs: What Retirees Need to Know! | Required Minimum Distributions

At the end of 2022, SECURE Act 2.0 was passed, and with it, changes are coming to the retirement planning space.

RMD rules, QCD limits, retirement contributions, 529 to Roth Rollover, and more... All of these areas are seeing some massive adjustments.

In today's video, we talk about 3 major changes coming to required minimum distributions.

Timestamps:
0:00 Your RMD Age is Changing...
0:12 SECURE Act 2.0 Explained
0:48 The New RMD Rules
1:42 No Roth 401k RMDs/25% RMD Penalty
3:17 How will this impact your retirement tax plan?

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Always remember, "You Don't Need More Money; You Need a Better Plan"

[bobgriffith]

I’m 73, just met with my retirement fund manager and he said he had good news and bad news for me, ,
Good news, I had enough money to live until death
Bad news, I have to die in 5 years

[jeffdittrich]

The tax code should be limited to ten pages in large print.

[markday]

According to IRS publication 554 (2023), the RMD age increased to 73 (not 75) for people who reach age 72 in 2023 or later.

[danmcnaul]

Eric, thank you. I am binge watching your videos. I consider myself tax savvy and I can't say I've learned anything new about tax law (so far). However, tax law is not what you're teaching me. The "strategy" of using all my accounts, assets, and positions as weapons to maximize my tax savings is what I'm learning from you. For example, in my case, tax loss harvesting to pay my ROTH conversion taxes is proving to be a brilliant idea. I didn't even think about this approach until I watched your videos. I'm glad I kept these stinkers around so I can use them in this way. Thank you for taking the time and energy to present all this excellent content.

[amyperez]

The fact that RMDs exist is unbelievable, it is my money.

[keahi]

I'm not sorry for all the comments I have made in the various replies. I had to argue on National Radio with Clark Howard during his show a few years ago. NO ONE! not him, Ramsey, or any one of the retirement "specialists" on radio every weekend in my area would touch or talk about the RMD. After I pointed Clark in the right direction to help people correctly on this subject, he did begin to talk about it nationally. And others finally have joined the band wagon. I am NOT looking for accolades, I am hoping you all will understand about this bad tax for the seniors going into fixed income. Please, become familiar.

[jerrylabat]

Actually the delaying of RMDs increases revenue for the IRS. More revenue will be collected because it will be in higher tax brackets. The RMD paid at 75 will be larger than the one at 72, hence more tax revenue. A larger percentage of the RMDs will be paid as a single tax payer, also resulting in more IRS revenue. So delaying RMDs actually provides more revenue for the IRS for anyone that has an RMD problem.

[rubyus]

Yes, please! More videos on RMDs and the Roth conversion!

[scottmeans]

Great presentation! Retired revenue agent and I learned some things I didnt know.

Very interested in learning more about roth coversions. Thanks for agreat job.

[richardlindsay]

Almost no one ever actually paid the 50% missed RMD penalty, they just asked for and received forgiveness. I wonder now that the penalty is lower, will the IRS be less forgiving?

[jimtwisted]

You should be able to take money out as needed not when you are told whether you need it or not.

[dlg]

I'd love to see a comprehensive video integrating this topic and Roth conversion strategies. I am planning to retire at 63 and most of my portfolio is in a 403b (which will be rolled into a traditional IRA when I retire), but I also have Roth, HSA and taxable accounts. I am considering whether it makes sense to convert my IRA down to zero by the age of 70, which is when I plan to claim SS. My income needs will drop dramatically at that time and what supplemental income I do need can come from my HSA, since I will be past age 65. I will need to draw on the Roth at some point, but not until my mid 80s. My main objective is leaving primarily Roth funds as legacy.

[dennisoshea]

How does this sound. I started work on 11/20/78 I have 44 years in now I am 62 and I got to work 5 years for full retirement and benefits. I build large machines 10 hr. Days on concrete and my 401k will not do anything in 5 yrs. I am broke down 👴

[adiposerex]

If the IRS extends my RMD anymore, I’ll die rich.

[bobriemersma]

I'd like to know more about in-plan conversions, 401k to Roth 401k. Can these be phased and incremental or must they be done in one slug? Does it depend on plan details or do we al have the same options for this?

[jsezyzb]

I understand Roth and 401k and thought they were separate. What is Roth 401k?

[eymvcpd]

This is control, I shud b able to take and or leave money I saved.

[dixter]

do you know the answer... if a person turns 73 in the last week of December can that person take RMD during the entire year that he turned 73 or does he have to wait till after he turns 73....

[pensacola]

I had my first RMD last year. I promise, they suck..

[HungNguyen-sedn]

Which age must you take the RMD if born in 1955? At 73 age?