SECURE Act 2.0 and Required Minimum Distributions

Brent Schafer, CFP®

On December 29, 2022, the SECURE Act 2.0 was signed into law. The act updates the rules surrounding retirement savings accounts and will have effects on almost every stage of saving for retirement. This new legislation builds upon the SECURE Act of 2019, that adjusted the rules on saving for retirement and withdrawing money from retirement accounts.

The change that will impact most retirees the year is an adjustment in the age at which an individual must take required minimum distributions (RMD) from their qualified retirement accounts. Prior to the SECURE Act 2.0, RMDs for retirees began the year the individual turned 72. Under the act, RMDs do not start until the retiree reaches age 73 for anyone born between 1951 and 1959. For anyone born after 1960, they will not be required to take RMDs until they turn 75.

Unfortunately, for those who have already started taking required minimum distributions, there will be no change to their status, and they will still be required to take distributions from their IRAs or similar tax-deferred accounts this year.

The table below shows a summary of the details of the new RMD requirements un the SECURE Act 2.0.


New RMD guidelines for retirees under the SECURE Act 2.0


For clients who are turning age 72 this year and thought that they must begin taking out RMDs, 2023 provides another year to implement tax planning strategies such as Roth conversions. If this situation applies to you, your HFG Trust advisor will be working to find the most tax efficient plan going forward.

Required minimum distributions are just the tip of the iceberg for all the changes that are included in the SECURE Act 2.0. However, many of the changes that will have an impact on retirees happen in the year 2024 and beyond. We will continue to provide updates for the years in which these changes become applicable.

If you have any questions or would like to discuss what impacts the SECURE Act 2.0 will have on your retirement plan, please do not hesitate to reach out.


Brent Schafer, CFP®

Financial Advisor