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.
December 2022 Financial Planning and Capital Market Review – Secure Act 2.0 – By John Kvale CFA, CFP
Hello and Welcome to our December 2022 … Financial Planning and Capital Market Update!
If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!
Newbies –
We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets thoughts and current events!
Hope you enjoy!
December 2022 Video
YouTube
Financial Planning Tip(s)
Secure Act 2.0 – Passed on 12-27-22 Quietly …. Shhhhh we are working through the details
On December 27, 2022 a HUGE bill … over 4000 pages, was passed…. while not sweeping in our neck of the woods, there is one main adjustment….
RMD – Required Minimum Distributions are pushed out again to age 73! Not Kidding!
Capital Market Comments
Rate Increase – Fed Raised rates for the Holidays
In December the FOMC (Federal Open Market Committee) led by Jerome Powell raised rates, but only by .50% … but it was a raise…
Have a Great Day, Talk to You at the End of January – Happy 2023!
John A. Kvale CFA, CFP
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Posted in Audio, Economy, FOMC, General Financial Planning, Interest Rates, Investing/Financial Planning, Market Comments, Monthly Review, Podcast, Retirement Planning, Video
Tagged FOMC, Interest Rates, John Kvale, Monthly Review, RMD, Secure Act 2.0