The SECURE Act pushes required minimum distributions (RMDs) from an IRA, SIMPLE IRA, SEP IRA or retirement plan account to age 72, up from age 70 1/2. However, you’re out of luck if you are younger than 72 but were 70 1/2 in 2019. You’ll have to begin taking withdrawals by the former age limit of 70 1/2 limit.
Calculate your RMDs by dividing your life expectancy, as determined by the IRS’s Uniform Lifetime Table, into your account balance as of the end of the immediately preceding calendar year. Different rules may apply if your account’s sole beneficiary is at least 10 years younger than you or if you continue working past age 72.
Plan for Withdrawals
When planning your withdrawal strategy, know that you may withdraw more than your RMD each year, but you can’t take less. You can also begin distributions earlier than required.
Talk to your tax and plan professionals to learn more.