A lot has happened so far in 2020, and changes to RMDs are no different.

RMD Basics

A required minimum distribution (RMD) is the amount of money that must be withdrawn from a traditional IRA, SEP, or SIMPLE individual retirement account (IRA) by owners and qualified retirement plan participants of retirement age.

For 2020, RMDs apply to anyone who was at least age 70 ½ years old by the end of 2019 (for future years, the SECURE Act increased the RMD beginning age to 72). Typically, Read More >>

The recently passed appropriations bill includes the long-awaited SECURE (Setting Every Community Up for Retirement Enhancement) Act and other retirement-related rules. This act went into law on January 1, 2020.  This is the most significant change in retirement plan rules since 2006. 

Here is a summary of the major components:

  • The minimum distribution age increased from 70 ½ to 72
  • No more stretch IRAs, beneficiaries must withdraw all assets of an inherited account wit