Traditional IRA changes FYI

SharkE · ‎08-19-2010

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.

SharkE · ‎08-19-2010

By the way MRD means 'mimimal required distribution'.

CelticCrafter · ‎03-09-2010

@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.

SharkE · ‎08-19-2010

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.

meallen616 · ‎01-10-2013

@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!

SharkE · ‎08-19-2010

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.

Jaspersmom · ‎06-08-2011

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

millieshops · ‎03-09-2010

@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.

SharkE · ‎08-19-2010

I have. Thanks for the reprimand.

Stelladorable · ‎08-22-2019

@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.