As has become usual practice, Congress passed some meaningful tax legislation as it recessed for the holidays.
In one of the new meaningful laws, enacted on December 20, 2019, you will find the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act).
The SECURE Act made many changes to how you save money for your retirement, how you use your money in retirement, and how you can better use your Section 529 plans.
Each week, I present one of the eight game changers of the SECURE Act. In week five, Congress raises the age when RMDs start.
Before the SECURE Act, you generally had to start taking required minimum distributions (RMDs) from your traditional IRA or qualified retirement plan in the tax year you turned age 70½.
Now you can wait until the tax year you turn age 72.
This change applies to RMDs after December 31, 2019, if you turn age 70½ after December 31, 2019.
Next Week: Open a Retirement Plan Later