Saturday, December 21, 2019
Required Minimum Distribution Raised To 72 Years Of Age
Congress passed and the President signed the budget to fund the government. Included in the budget was the Secure Act. The Secure Act was a bipartisan agreement that changed and enhanced the pension system. This included allowing annuities to be part of the IRA or 401k plans and no age restrictions on IRAs. there are many other significant changes and they can be found Here
For teachers who are near or are retired, the most important change is the SECURE Act pushes the age that triggers RMDs from 70½ to 72. That gives the retiree another year and a half of appreciation before giving the Federal government their Required Minimum Distribution (RMD)..
Here are my two posts where I discuss the Required Minimum Distribution and the TDA. Here and Here. ontill TRS and the UFT allow for a ROTH option,when you pay the Federal Government their money upfront, the RMD is the penalty we pay for having a tax deferred TDA.