Friday, October 30, 2020

Legislation to Raise Required Minimum Distribution Age to 75

Last week CNBC ran this story: New retirement bill has perks for seniors, student loan borrowers. Here are the key points from the story

  • A new, bipartisan bill would raise the age for required minimum distributions from accounts like 401(k)s and IRAs to 75, from 72.
  • It would also let workers repaying student loans to get a company 401(k) match even if they’re not saving in their workplace plan.
  • The Securing a Strong Retirement Act of 2020 was proposed Tuesday by Rep. Richard Neal, D-Mass., and Rep. Kevin Brady, R-Texas.

Here's the news story "The legislation, proposed by House lawmakers on Tuesday, raises the age for starting RMD from 72 to 75.  The bill, the Securing a Strong Retirement Act of 2020, is available here.

Thanks to my colleague and friend Professor Feeley for sending me the story.

 

https://lawprofessors.typepad.com/elder_law/2020/10/legislation-to-raise-required-minimum-distribution-age-to-75.html

Consumer Information, Current Affairs, Federal Statutes/Regulations, Retirement | Permalink

Comments

For background on the RMD proposal, see my 2012 article "Reforming the Taxation of Retirement Income," [https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2240494], explaining on page 357 why the starting age should be changed to 74.5.

Posted by: RICHARD L. KAPLAN | Nov 2, 2020 9:45:58 AM

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