SECURE Act 2.0 was signed into law on December 29, 2022

[blue_green_sparks]

For my case being a child of 1960 (or later) the RMDs will start at the ripe old age of 75. Gives us more time to do Roth conversions and save a bit on taxes. The automatic 401K sign-up provision will be looked upon favorably decades from now when the next generations go to retire. I just hope they don't use it as an excuse to defund social security.

[flyingaway]

I don't understand why it is such a big deal to postpone RMDs. One has to get the money out one way or another. 

[seattlecyclone]

Ditto. More flexibility is a valuable thing, I get it. The RMDs start out at such a low percentage of your account balance though. If you weren't planning to take roughly that much out anyway, you saved entirely too much and so it shouldn't really bother you if your tax is a bit higher.

[Omy]

Ditto. More flexibility is a valuable thing, I get it. The RMDs start out at such a low percentage of your account balance though. If you weren't planning to take roughly that much out anyway, you saved entirely too much and so it shouldn't really bother you if your tax is a bit higher.

This is the conclusion we came to. It's such a balancing act between Roth conversions and maximizing ACA subsidies, that we decided to focus on subsidies and just deal with higher taxes when RMDs come around. As oversavers, we shouldn't care too much if we have to pay more taxes after age 75.

While it's advantageous to us, I've wondered why they are increasing the RMD age as US mortality age is declining.

[Turtle]

Ditto. More flexibility is a valuable thing, I get it. The RMDs start out at such a low percentage of your account balance though. If you weren't planning to take roughly that much out anyway, you saved entirely too much and so it shouldn't really bother you if your tax is a bit higher.

As someone who resembles that remark, I have to say that I greatly appreciate the longer runway.  Keeping income low enough to not have Medicare penalties could potentially be a thing for me.  (Inherited spousal 401k, but starting 2023 will be filing single which greatly decreases thresholds.

[blue_green_sparks]

Not a huge deal. On my big "life plan" financial spreadsheet, the delayed RMD puts us ahead by around $24K @85 years old. We get few easier years of income adjustment (for ACA) for the younger one. But yeah, the income gets way up there as the entitlements plus RMD kick in.

[Fomerly known as something]

Point of order.  It wasn’t the Secure Act it was “The Consolidated Appropriations Act, 2022”

It had Secure act components in its 4000 pages.

[blue_green_sparks]

Point of order.  It wasn’t the Secure Act it was “The Consolidated Appropriations Act, 2022”

It had Secure act components in its 4000 pages.

Yes, and I don't feel any more secure than before anyways. Plus, your username is perfectly validated.
Changes are required for SS to make bank in the near future. That will be the big news, I guess. Conservative representatives are talking about a big tax code overhaul. Taxing spending instead of income. If they win big next election, I will feel less secure about SS than ever.

[elysianfields]

Ditto. More flexibility is a valuable thing, I get it. The RMDs start out at such a low percentage of your account balance though. If you weren't planning to take roughly that much out anyway, you saved entirely too much and so it shouldn't really bother you if your tax is a bit higher.

As someone who resembles that remark, I have to say that I greatly appreciate the longer runway.  Keeping income low enough to not have Medicare penalties could potentially be a thing for me.  (Inherited spousal 401k, but starting 2023 will be filing single which greatly decreases thresholds.

As someone who will draw a Federal pension and continue FEHB through retirement, I appreciate having a few extra years for Roth conversions at lower tax rates before RMDs force us into higher brackets.  I plead guilty to having saved entirely too much.

@Turtle my condolences at the loss of your spouse.

[Turtle]

Thank you.  It was a long, drawn out illness with a cancer more known for being quick.  I was grateful for every extra year and day we got to have together.