Reminders of Important “Line in the Sand” Age-Related Dates that have Recently Changed …

This is an abbreviated article coming in the Q 4 2023 Newsletter … Important enough, we wanted to have its’ own airtime for future reference and emphasis.

The Secure Act 2.0 completed in very late 2022 made adjustments to many age-related “Line in the Sand” important dates as well as some other peripheral and yet undetermined information.

RMD (Required Minimum Distributions)

One of the most important and likely most confusing due to the recent multiple updates is the adjustment of Required Minimum Distributions (RMD) They are now mandatory to commence for those aged 73. Those turning 75 after 2033, your new RMD age is 75.  Recall, these just a few years ago, moved from age 70 1/2 to 72, now to age 73 and eventually age 75. No wonder we are all confused!

Bottom line, current earliest required minimum distribution is age 73 until the next scheduled change, if not sooner, in 2033.

RMD Practice Reminder – While you may have many different IRA type of accounts (consolidating is always best, but not always possible) you need only take your mandatory RMD amount in total, no matter the account(s) they come from. Said another way, Uncle Sam does not care which accounts your RMD’s come from, as long as you take the minimum amount needed, as he really wants in taxes on those untaxed funds.

Social Security Mandatory Commencement Date reminder age 70

With 75 being the new 65 it is not surprising that many people are choosing to work longer, happily and healthily adding to society in a peak knowledge chapter, and pushing their Social Security commencement day off accordingly. There are many reasons to start Social Security early, on your full retirement age, or wait until that last possible moment. The current maximum age that you may defer commencement of  Social Security still remains at age 70, well below the new younger thresholds that we hopefully are all feeling. 

The earliest one may take Social Security remains age 62, with a 25% discount to the full retirement age (FRA) benefit amount AND has a maximum earnings level of $21,240 from W-2 or 1099 (working income) not pension, investment or other non working types of income.  

Have a Great “Less Confused Important Age Date Reminders” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.



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