The retirement legislation includes policy changes that will impact defined contribution (DC) plans, defined benefit (DB) plans, individual retirement accounts (IRAs) and 529 plans. Many of the changes affect employees and employers, but there are several changes that affect those already retired.
There are changes that could affect retirees that you should make yourself familiar with, and there is one change that we want to highlight to all retirees:
The Act states that the beginning RMD (Required Minimum Distribution) age is shifted to age 72 for those who reach the age of 70½ starting in year 2020. This would mean that those reaching age 70½ in 2019 would need to continue to take RMDs in 2020. The IRS may provide further guidance on this point so those who reached age 70½ in 2019 may want to speak with their tax advisor about their 2020 distribution approach.
Here are some links to more information: