Key Changes in Required Minimum Distribution (RMD) Rules for Retirees in 2024
Saturday, 11 May 2024, 18:19
Understanding Required Minimum Distribution (RMD) Rules in 2024
Knowing these rules could save you tons in taxes and fees. One of the biggest advantages of saving for retirement in an account like an IRA or 401(k) is that you can defer your taxes. Instead of paying a big tax bill upfront, you can wait to pay taxes until you're in retirement. That can give you more money to invest today.
The Three New RMD Rules You Need to Know:
- Required minimum distributions begin at 73: Under the SECURE Act 2.0, the new RMD age is 73, with a deadline extension for the first distribution.
- No RMDs for Roth 401(k)s: The exemption for Roth 401(k)s puts them on par with Roth IRAs.
- Charitable gifts lower your RMD: Qualified charitable distributions can now reduce your annual RMD by up to $105,000.
Stay informed about these changes to navigate your retirement planning effectively and avoid unnecessary penalties.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.