Required Minimum Distributions Now Required at Age 73

SECURE 2.0 Act of 2022 increased the minimum age for individuals to begin taking their Required Minimum Distributions (RMD) from their qualified pre-tax accounts (401(k)s, IRAs, 403(b)s, 457(b)s) from 72 to 73.  For an individual who turns 72 after December 31, 2022 and 73 before January 1, 2033, their first RMD must be taken by April 1 of the calendar year following the year they turn 73.  This means for individuals born in 1951, the first RMD does not need to be taken until April 1, 2025.  If you were born in 1951 and mistakenly took an RMD in 2023 already (not required to), you have until September 30, 2023 to “rollover” the distribution amount back into the account and avoid any tax liability.  A typical rollover is required to be completed within 60 days but the IRS has given relief for those who mistakenly took an RMD in 2023 until September 30, 2023 regardless of when the RMD was taken.