Friday, May 24, 2019
The Age To Take The Required Minimum Distribution Will Be Raised To 72.
In what seems to be a rare case of bipartisanship the House passed an enhancement to retirement plans and the Republican dominated Senate is expected to pass it with little or no changes. As part of the enhancement, the Required Minimum Distribution age will be increased from 70.5 to 72.
That means for our Tax Deferred TDA (403b), we will allow it to accumulate for another two years without paying federal tax. Unless the IRS changes the longevity percentages, at age 72 the RMD will require that the TDA total to be federally taxed at 3.91%
The RMD table by age can be found here.