New RMD Rules

[Towanda]

I've read through many overviews of the SECURE Act.  One item that isn't clear to me is whether an active non-owner employee can delay their RMDS beyond age 72, as they could under the old 70 1/2 rules. 

Thanks!

[Bill Presson]

59 minutes ago, Towanda said:

I've read through many overviews of the SECURE Act.  One item that isn't clear to me is whether an active non-owner employee can delay their RMDS beyond age 72, as they could under the old 70 1/2 rules. 

Thanks!

That hasn't changed.

[CuseFan]

Same RBD but with 72 substituted for 70.5 - so the 4/1 of the year following the calendar year in which the participant attained age 72 or, if later, retired.

This applies to anyone who did not attain 70.5 by 12/31/2019 - those participants are under the old rules.

[Bill Presson]

On 2/3/2020 at 12:13 PM, Towanda said:

I've read through many overviews of the SECURE Act.  One item that isn't clear to me is whether an active non-owner employee can delay their RMDS beyond age 72, as they could under the old 70 1/2 rules. 

Thanks!

Here's the actual language. It just substitutes the age and specifically references owners.

SEC. 114. Increase in age for required beginning date for mandatory distributions.

(a) In general.—Section 401(a)(9)(C)(i)(I) of the Internal Revenue Code of 1986 is amended by striking “age 70½” and inserting “age 72”.

(b) Spouse beneficiaries; special rule for owners.—Subparagraphs (B)(iv)(I) and (C)(ii)(I) of section 401(a)(9) of such Code are each amended by striking “age 70½” and inserting “age 72”.

(c) Conforming amendments.—The last sentence of section 408(b) of such Code is amended by striking “age 70½” and inserting “age 72”.

(d) Effective date.—The amendments made by this section shall apply to distributions required to be made after December 31, 2019, with respect to individuals who attain age 70½ after such date.

[Towanda]

Thank you!