IRS Raises Starting Age for Required IRA Distributions – Did You Know?

The 2019 SECURE Act raised the age at which traditional IRA holders must begin taking annual required minimum distributions (RMDs) from 70 ½ to 72 years. If you have a traditional IRA and turned 70 ½ in 2019, you must still take your 2019 RMD by April 1, 2020. However, if you were under 70 ½ years of age on December 31, 2019, you do not need to begin receiving RMDs until the year when you turn 72. Note that this change does not affect the minimum age to withdraw from a traditional IRA without penalty, which remains at 59 ½ years.

Because the SECURE Act was signed into law near the end of December 2019, some banks may have sent out incorrect notices about RMDs in January 2020. If you turn 70 ½ in 2020 and received a notice from your traditional IRA manager that you must take a 2020 RMD, you should receive a correction notice by April 15, 2020 stating that no RMD is due this year. An experienced tax professional can help you determine when you must take your first RMD, and how to best follow up with your IRA manager if you believe you received an incorrect notification.