topic Re: Traditional IRA changes FYI in Community Chat

Traditional IRA changes FYI

SharkE — Tue, 27 Dec 2022 20:24:58 GMT

Ok, folks in the yr that anybody turns 72 the IRS or whoever the powers that be who mandates to where you have to start taking out of your Traditional IRA the MRD that rule has changed and takes effect on Jan. 2023.

I was one that in the yr 2023 would turn 72 by the end of the yr. I was getting ready to go up to my financial advisor people and see what the Gov figure was gonna be for me to have to take out.

Now, they changed it to where it's not 72 any more , but, age 73, so, now, I have to wait till 2024.

The old rule was if you didn't start withdrawing when they told you to and how much YOU HAD TO TAKE OUT they would take 50% anyway. That has changed to 25%.

So depending on how you look at it it may be good news for some and bad news for others.

Go online and read up on Secure Act 2.0 for what I'm talking about or call your own financial advisors if you were planning on making a mandatory withdrawal this yr. like I was.

Re: Traditional IRA changes FYI

SharkE — Tue, 27 Dec 2022 20:30:23 GMT

By the way MRD means 'mimimal required distribution'.

Re: Traditional IRA changes FYI

CelticCrafter — Tue, 27 Dec 2022 21:07:22 GMT

@SharkE wrote:
Ok, folks in the yr that anybody turns 72 the IRS or whoever the powers that be who mandates to where you have to start taking out of your Traditional IRA the MRD that rule has changed and takes effect on Jan. 2023.

I was one that in the yr 2023 would turn 72 by the end of the yr. I was getting ready to go up to my financial advisor people and see what the Gov figure was gonna be for me to have to take out.

Now, they changed it to where it's not 72 any more , but, age 73, so, now, I have to wait till 2024.

The old rule was if you didn't start withdrawing when they told you to and how much YOU HAD TO TAKE OUT they would take 50% anyway. That has changed to 25%.

So depending on how you look at it it may be good news for some and bad news for others.

Go online and read up on Secure Act 2.0 for what I'm talking about or call your own financial advisors if you were planning on making a mandatory withdrawal this yr. like I was.

You don't HAVE to wait. You can start taking money from an IRA or annuity at 59½ if one chooses to do so.

Re: Traditional IRA changes FYI

SharkE — Tue, 27 Dec 2022 21:16:09 GMT

Yeah, and it's taxed.

think I will just tap the Roth IRA already been taxed.

I had just waited the whole yr. for it to have to be done come 2023, now, they flipped the script on me.

Have to regroup here. thought I would tell others about it if they have been waiting too.

Re: Traditional IRA changes FYI

meallen616 — Tue, 27 Dec 2022 21:33:01 GMT

@SharkE ,

I too turn 72 in 2023. I had been speaking to my financial advisor about the same situation as you. I hope they don't keep changing it...

Waiting this whole year for 2023 and now this!

Re: Traditional IRA changes FYI

SharkE — Tue, 27 Dec 2022 21:51:55 GMT

Yeah, I made a sizable donation to my church on 12-18 knowing that I would get it back when I had to take the MRD come Jan.

Now, in order to keep on schedule and pay myself back

be coming out of another IRA. Aggravation !

Church furnace went out and they need 2. I was trying to help out.

I always get a surprise it seems.

Re: Traditional IRA changes FYI

Jaspersmom — Tue, 27 Dec 2022 22:10:50 GMT

That's great news. I'll be 72 in 2023, so I'm happy I can hold off another year.

Re: Traditional IRA changes FYI

millieshops — Tue, 27 Dec 2022 22:37:16 GMT

@SharkE Because making the decision about when to withdraw retirement monies and which ones to draw from really depends upon more than just knowing any new requirements about IRA'sof all sorts, but also knowing about other pieces of tax law, your total sources of income, etc. I urge you to speak with a knowledgeable source with whom you can sensibly disclose information that does not belong on a public forum like this one.

Re: Traditional IRA changes FYI

SharkE — Tue, 27 Dec 2022 23:06:50 GMT

I have. Thanks for the reprimand.

Re: Traditional IRA changes FYI

Stelladorable — Tue, 27 Dec 2022 23:27:05 GMT

@meallen616 wrote:
@SharkE ,
I too turn 72 in 2023. I had been speaking to my financial advisor about the same situation as you. I hope they don't keep changing it...
Waiting this whole year for 2023 and now this!

You can still take the withdrawal. You have the option of NOT taking the withdrawal without paying a penalty. It is good news for people who don't need the money and can wait an extra year until the withdrawal is mandated.

Re: Traditional IRA changes FYI

Venezia — Tue, 27 Dec 2022 23:54:36 GMT

@SharkE - Thanks for that information. I think it will help anyone who's been affected by the stock market fluctuations, especially if a 401(K) was hit hard.

It will give more time for some to recover any losses, before having to withdraw.

Re: Traditional IRA changes FYI

Zaimee — Wed, 28 Dec 2022 00:01:41 GMT

@SharkE and others

It is an RMD - Required Minimum Distribution

Re: Traditional IRA changes FYI

hopi — Wed, 28 Dec 2022 00:24:24 GMT

@SharkE

Thank you so much for posting infor... did not realize this at all.

Re: Traditional IRA changes FYI

SharkE — Wed, 28 Dec 2022 00:26:47 GMT

means the same thing LOL

I'll wait and worry with it in 2024. Funny, how it just happened to pop up the last few days of 2022.

first time I heard about it anyway. Glad, I was able to help others !

Re: Traditional IRA changes FYI

BarbieDollToo — Wed, 28 Dec 2022 00:31:55 GMT

@SharkE wrote:
I have. Thanks for the reprimand.

Seems your avatar fits your responses.

Re: Traditional IRA changes FYI

SharkE — Wed, 28 Dec 2022 00:35:04 GMT

When your right your right.

Re: Traditional IRA changes FYI

meallen616 — Wed, 28 Dec 2022 09:18:45 GMT

@Stelladorable ,

I have spoken to my advisor about this for awhile. I will wait another year, but , others may not be able too.

Re: Traditional IRA changes FYI

Stelladorable — Wed, 28 Dec 2022 14:42:15 GMT

@meallen616 wrote:
@Stelladorable ,
I have spoken to my advisor about this for awhile. I will wait another year, but , others may not be able too.

I believe there is a misunderstanding. As long as you are 59 1/2 or older, nobody has to wait another year. You can still take a distribution. This is not impacting anyone in a negative way.

Re: Traditional IRA changes FYI

depglass — Wed, 28 Dec 2022 15:46:00 GMT

"Remprimand" was out of order. You did not post erroneous information.

Re: Traditional IRA changes FYI

SharkE — Wed, 28 Dec 2022 16:47:21 GMT

That's the way it always is in QVC groups.

You learn something you want to help others that might be in the same shape, so, you post your experience and all you get are right fighters, and mean spirited folks who want to tear others down.

I get tired of it.