In our January newsletter we present an overview of some of the changes to Required Minimum Distributions, or RMD’s, that will be happening in 2025.
- The RMD age increases from 72 to 73. If you turned 73 in 2024 and have not taken RMD’s yet, you have to take your first RMD by April 2025.
- Under the SECURE Act, non-spouse beneficiaries have to distribute an inherited IRA within ten years. If the account owner had been taking RMD’s, the beneficiary needed to take them if the account was inherited during that 10 year period.
- If you were required to take RMD’s on an inherited IRA in 2021 – 2024 (but did not), you won’t have to pay a penalty or make up for the missed distributions. However, starting in 2025, you must take RMD’s.
It’s important to have a proper financial plan in place, so that you can get a handle on how much retirement income you’ll be receiving in any given month. You may have to pay higher Medicare premiums if you trigger an IRMAA. If you’d like to discuss your financial plan, contact us to set up a time to speak.
-Judd
Sources
Ashford, Kate. (2024, Nov 13). Nerdwallet. What Is IRMAA, and What Are the 2025 IRMAA Brackets? https://www.nerdwallet.com/article/insurance/medicare/what-is-the-medicare-irmaa
IRS. (2024, December 13th.) IRS urges many retirees to make required withdrawals from retirement plans by year-end deadline. https://www.irs.gov/newsroom/irs-urges-many-retirees-to-make-required-withdrawals-from-retirement-plans-by-year-end-deadline
Levine, Jeffrey, and Henry-Moreland, Ben. (2024, July 24.) Kitces.com. Nerd’s Eye View. Untangling The IRS’s New Finalized (And Proposed) Regulations On RMDs: The 10-Year Rule, Trust Beneficiaries, Spousal Beneficiaries, Annuities, And More! https://www.kitces.com/blog/secure-act-2-0-irs-regulations-rmd-required-minimum-distributions-10-year-rule-eligible-designated-beneficiary-see-through-conduit-trust/