Forbes has published an article, “Can Delaying IRA Distributions Raise Your Taxes?”, which discusses how although Congress is raising the age you must start withdrawing from taxable retirement accounts, waiting too long can raise your taxes. The article begins as follows:
Congress is raising the age you must start withdrawing from taxable retirement accounts. But waiting too long can raise your taxes and Medicare Part B premiums. What’s best for you requires careful calculation, not following rules of dumb.
The answer is definitely yes!
But let me provide some background for why this question is of particular current relevance. Then I’ll provide some illustrations based on my company’s software, maxifi.com, to point out that definitely yes could, depending on your situation, be definitely no.
This year Congress will likely pass The Secure Act 2.0 (formally, Securing a Strong Retirement Act of 2022), which, like The Secure Act of 2019, enacted under President Trump, will raise the age at which you need to take distributions from regular (taxable) IRAs and from your employer 401(k), 403(b), and similar accounts. The only exception involves retirement accounts of employers with whom you are still working.
Posted by Mallory Wentz, Associate Editor, Wealth Strategies Journal.