Will the Age for Required IRA Withdrawals Go Up in 2023?
Tens of millions of Americans use IRAs to help them save for retirement. Traditional IRAs allow many taxpayers to deduct the amount that they initially contribute, and then they get tax-deferred treatment on income and gains on their investments, as long as they remain within the IRA.
Unfortunately, all good things must come to an end, and for traditional IRAs, there comes a time when people must start taking required minimum distributions (RMDs) from their retirement accounts. Most withdrawals from traditional IRAs, including RMDs, get included in taxable income and increase your tax bill, so it's understandable why many people prefer to delay taking distributions as long as possible. However, some lawmakers in Washington hope to give retirees some extra time before they have to start taking money out of their retirement accounts.
Under current law, those who are 72 or older by the end of the calendar year have to take RMDs from their traditional IRAs, as well as 401(k)s or similar work-sponsored retirement plans. If you just turned 72 in 2022, then you can put off taking money out of your retirement accounts until April 1, 2023, but otherwise, the deadline is Dec. 31.
Source Fool.com
