Clients who will be turning 70 ½ this year are being advised to PAUSE with regards to taking their Required Minimum Distribution from their IRA for 2019.
Clients of this age AND who have an IRA or a 401(k) plan, under current tax law, are required to begin taking their Required Minimum Distribution (“RMD”).
However, there are proposals in both the House and the Senate to increase the age when they are required to take their RMD. The bill in the House, called the SECURE Act, would increase the RMD age to 72. The Senate has passed their legislation called RESA. This would increase the RMD age to 75.
While both of these are merely proposals and not final legislation, if a bill is passed, it would appear the RMD age would increase to at least age 72. If legislation is passed, and individuals can afford NOT to take funds out of their IRA, they would likely be better served to wait until age 72 and defer the tax.
Borgida & Company, P.C. will keep you apprised of this pending legislation as it develops. Click here for more additional information on Taking Your Required Minimum Distribution. In the meantime, clients with questions, please call our office (860) 646-2465.
Tom Scanlon has over thirty years experience in public accounting with an extensive background in the areas of financial, tax, and estate planning. He prides himself on providing in-depth and customized solutions to privately held businesses and their owners. He is a Certified Public Accountant and Certified Financial Planner®. Tom is a frequent speaker for area organizations and has recently been quoted on CNBC, Fox 61 News and AARP's blog. Tom also has been a guest columnist for numerous publications including The Wall Street Journal, Barron's, Money Magazine, The Hartford Courant, The Hartford Business Journal, and The New Haven Register. He is a member of the American Institute of Certified Public Accountants, the Connecticut Society of Certified Public Accountants, and the Financial Planning Association. Active in the community, Tom supports a variety of not-for-profit organizations.
