4. The RMD age has changed — and may change again.
In 2022, SECURE ACT 2.0 raises the RMD age from 72 to 73. People born in 1960 uk db center or later must begin taking RMDs at age 75. As seniors continue to live and work longer, our government will likely continue to incentivize able-bodied people to continue working and saving, and further delay the RMD age.
5. You can take action to avoid RMD penalties.
If you fail to pay your RMD in a given year, the IRS will slap you with one of the heaviest penalties in the tax books: 50% of your RMD amount. But if you realize you made the mistake and act quickly, you can file Form 5329, citing “reasonable cause” to explain your mistake and request that the penalty be waived.
6. Future year RMDs are based on the previous year's account balance.
The amount of your RMD for a given year is locked in by your account balances on December 31 of the previous year. Future fluctuations in those balances generally do not affect your RMD for the current year.
7. You can withdraw your total RMD from one account.
If you have multiple retirement accounts of the same type from which you need to take RMDs, you can add up your total RMDs and then take that amount from just one account. However, it’s important to note that you cannot satisfy an IRA RMD from a 401k or 403B, or vice versa.
