RMDs

Updates

January 12, 2023: regional bank provides update. 

August 9, 2022: changing age to age 75 years old?

August 9, 2022: the "new" rules, still up in the air --

• Forbes: not yet finalized, but likely they will be;
• gobankingrates: "horribly complex"
• Yahoo!Finance: a real mess;

April 4, 2022: Investopedia -- the rules now.

December 14, 2021: Forbes -- the rules now.

March 30, 2021: tea leaves suggest the "72" age will be increased to 75. The only question is whether Congress will get it done this year or next. This year is mid-term elections; now or never.

RMDs

Original Post: April 7, 2019

Baby boomers. Richest generation in US history.

Greatest generation: the parents of the boomers. The greatest generation: the first generation to leave money to their children, the boomers.

The baby boomers: 1946 - 1964.

I was born very, very early in the boomer generation.

I will start taking RMDs from IRAs soon -- not this year, not next year, but soon. Once we start taking RMDs, we will take RMDs for 26 years. And I'm at the beginning of that bow wave of those taking RMDs; I was among the early boomers.

I will most likely re-invest those RMDs.

But Uncle Sam will start to collect taxes on those RMDs.

We don't hear much talk about that, but my hunch is that by the time the peak of that bow wave hits, let's say ten years from now, the amount of money Uncle Sam collects from taxes on RMDs will not be trivial.

I thought about that (RMDs) when I read the Barron's headline and part of the story: the bull market could last another decade. 

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