Updated
Updated · 24/7 Wall St. · Aug 24
IRS Lifts RMD Age to 75 for 1960-Born Retirees Under SECURE 2.0
Updated
Updated · 24/7 Wall St. · Aug 24

IRS Lifts RMD Age to 75 for 1960-Born Retirees Under SECURE 2.0

3 articles · Updated · 24/7 Wall St. · Aug 24

Summary

  • Jan. 1, 1960-born and younger savers can now delay required minimum distributions from traditional IRAs, 401(k)s and 403(b)s until age 75 instead of 73.
  • Section 107 of the 2022 SECURE 2.0 Act changed the schedule by birth year, and IRS regulations finalized in July 2024 took effect for calendar years beginning Jan. 1, 2025.
  • Those extra 2 years create a longer pre-RMD window for Roth conversions, letting retirees shift money at lower tax brackets before mandatory withdrawals raise taxable income.
  • Later, larger RMDs can increase taxes on Social Security and trigger higher Medicare Part B and Part D premiums through IRMAA, making the added runway a key planning tool.
  • The rule leaves people born from 1951 through 1959 on an RMD age of 73, creating a clear split between adjacent retirement cohorts.

Insights

Will delaying your forced retirement withdrawals to age 75 secretly trigger a massive tax trap that drains your savings?
How could a simple two-year delay in retirement distributions completely upend your future Medicare premiums?