The US Internal Revenue Service (IRS) has proposed delaying the implementation of new regulations affecting workers born in 1959, alongside the broader SECURE 2.0 mandate. The rule aims to boost required minimum distribution (RMD) ages until workers reach 75 by 2033.
Under current rules, retirees start drawing down their accounts at age 70½. However, for workers born in 1959, the IRS proposed increasing RMDs to 73, mirroring the RMD date for those born on or after January 1, 1960.
The delay until 2026 will allow these workers more time to adjust to the new regulations. The rules also clarify that distributions from designated post-tax Roth accounts cannot be used to satisfy RMD requirements, making them eligible for rollover distributions.
Additionally, the IRS will establish a fair market valuation date for determining the portion of annuity subject to RMDs and provide technical guidance on other aspects of the regulation.
Source: https://news.bloomberglaw.com/daily-labor-report/irs-delays-proposal-to-close-401k-withdrawal-age-rule-loophole