
Huge Changes to Required Minimum Distributions (RMDs) Courtesy of SECURE 2.0
It seems like yesterday, but in the pre-COVID-19 calm before the storm of December 2019, Congress passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act. The Act had many provisions, but the most important were increasing the beginning age for taking[MKS1] RMDs from age 70.5 to 72 and a new set of guidelines that effectively ended the Stretch IRA [MKS2] for most non-spouse beneficiaries of IRAs. Well, three years later, on December 23, 2022, Congress tucked SECURE 2.0 into the Consolidated Appropriations Act of 2023, and here we go again. SECURE 2.0 has a bonanza of changes related to retirement plans. Some have broad effects and others apply to small groups of people. Implementation of the new rules is spread out over the next 10 years, but most are effective in 2023, 2024 and 2025.