In this episode of ‘Dr. Friday Tax Tips – One Minute Moment,’ Dr. Friday, the leader of Dr. Friday’s Tax and Financial Firm, discusses the recent changes to the Required Minimum Distributions (RMDs) age threshold. She explains that individuals who turned 72 after December 31, 2022, are now required to start their RMDs at 73. This adjustment aligns with increased life expectancies and aims to simplify the determination of when to commence RMDs. Dr. Friday clarifies that the year you turn 73 is when your RMDs should begin, with a specific mention of the initial year’s exclusion allowing deferral until April of the following year. This episode is essential for anyone navigating the complexities of retirement planning and RMDs.
Transcript:
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info go to www.drfriday.com. This is a one-minute moment.
Required minimum distribution. Now for all those that have turned 72 after the year of December 31st, 2022, you will now start your RMDs at 73. Which is great, because people are living longer and then having it at 70 and a half made it difficult for some people to really figure out what year they should be taking their RMDs. So at this point, it’s at 73, the year that you turn 73, if you have December 31st, you need to take it in that year. There is an exclusion for the first year up until April the following, but basically let’s keep it simple. Year you turn 73, you need to take your RMD.
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