Forbes has published an article, “Secure 2.0 Act Allows Later Distribution of IRAs,” which discusses the benefits of the recently passed Secure 2.0 Act, specifically in regards to Qualified Charitable Distributions (QCDs), and how taxpayers can strategically take advantage of this development. The article begins as follows:
Congress has passed legislation benefitting savers who have Individual Retirement Accounts (IRAs) and other qualified retirement plans. This legislation improves some of the goodies contained in the original SECURE Act passed at the end of 2019.
The original SECURE Act changed the “required beginning date”, the age at which required minimum distributions (RMDs) from IRAs and certain other qualified plans must commence, from April 1 of the year after attaining age 70 1/2 to April 1 of the year after attaining age 72. This meant that persons born in the first half of 1951 were able to wait two years before taking their first distribution. SECURE 2.0 raises the age to 73 for 2023 (and to age 75, ten years later). Under the new law, IRA owners born in 1951 can wait until April 1, 2025 to commence their RMDs, while those born in the first half of 1950 had a required beginning date of April 1, 2021. Many taxpayers should choose to take their distribution in the year they turn 73 (rather than wait until the following April 1) so that they do not have to take two distributions in the same year, which could result in some income being taxed in a higher tax bracket.
Click here to view the full article: “Secure 2.0 Act Allows Later Distribution of IRAs”
Posted by Melissa Zheng, Associate Editor, Wealth Strategies Journal.
Wealth Strategies Journal 