{"id":171789,"date":"2021-02-05T22:10:21","date_gmt":"2021-02-05T19:10:21","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/retirement-weekly-whats-new-with-rmds-in-2021\/"},"modified":"2021-02-05T22:10:21","modified_gmt":"2021-02-05T19:10:21","slug":"retirement-weekly-whats-new-with-rmds-in-2021","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/retirement-weekly-whats-new-with-rmds-in-2021\/","title":{"rendered":"#Retirement Weekly: What\u2019s new with RMDs in 2021?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6aeeace173262\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6aeeace173262\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/retirement-weekly-whats-new-with-rmds-in-2021\/#Required_minimum_distributions_are_back_but_theyll_be_changing_again\" >Required minimum distributions are back, but they\u2019ll be changing again<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/retirement-weekly-whats-new-with-rmds-in-2021\/#Dan_Moisand\" >Dan Moisand<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Retirement Weekly: What\u2019s new with RMDs in 2021?<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Required_minimum_distributions_are_back_but_theyll_be_changing_again\"><\/span>\n  Required minimum distributions are back, but they\u2019ll be changing again<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"D6023C84-671C-11EB-B5A6-CF912177DA46\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       <strong>Q.:<\/strong> I heard that the RMD rules have changed? Is that true? \u2013 Kenny in Memphis<\/p>\n<p> <strong>A.:<\/strong> Have the RMD rules changed? Yes, they have changed, will change again in 2022 and may again after that.<\/p>\n<p>Last year, in response to COVID-19, the CARES Act waived required minimum distributions (RMD) for 2020. So, the first change is that RMD are back for 2021 under the rules that were in effect at the beginning of 2020.<\/p>\n<div class=\"paywall\">\n       You may remember that 2020 started with a pair of notable changes from past RMD rules in 2019\u2019s SECURE Act. First, the age at which RMD first <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lies was changed from 70\u00bd to 72. Second, except for a few types of beneficiaries such as spouses, the so-called \u201cstretch\u201d capability of beneficiaries inheriting retirement accounts was eliminated. In its place, was a new 10-year payout requirement. Beneficiaries can take whatever they want from the account whenever they want after inheriting with only one requirement. The entire account must be emptied by the end of the 10th year after the year of the original owner\u2019s death. <\/p>\n<p>For 2022, due to longer life expectancies, the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/public-inspection.federalregister.gov\/2020-24723.pdf\" class=\"icon none\">IRS released new tables<\/a> for all three life expectancy tables affecting RMD. This will mean smaller minimums next year than anticipated under the current scales and therefore less taxation on those retirees. For example, under the new scale, that first RMD will be 6.57% smaller for someone turning 72 in 2022 than it would be had there been no change by the IRS. <\/p>\n<p>As for future changes, there is interest in Congress to raise the starting age for RMD to 75. In October, a bill was introduced with bipartisan support for the idea. We\u2019ll just have to wait to see how it fares through the legislative process. Sometimes wide support means quick passage but many similarly popular provisions like Qualified Charitable Distributions from IRAs took years to become law. <\/p>\n<p>It is very important to stay on top of these rules. Failure to take a required minimum distribution triggers a penalty of 50% of the shortfall, one of the stiffest penalties in the tax code. If your RMD is $50,000 and you miss it, you owe a $25,000 penalty in addition to whatever taxes are due on the distribution you take to fix the shortfall. Ouch!<\/p>\n<p><em>If you have a question for Dan, please email him with \u2018MarketWatch Q&amp;A\u2019 on the subject line<\/em>. <\/p>\n<p><em>Dan Moisand is a financial planner at <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/moisandfitzgerald.com\/\" class=\"icon none\">Moisand Fitzgerald Tamayo<\/a> serving clients nationwide but with offices in Orlando, Melbourne, and Tampa Florida. His comments are for informational purposes only and are not a substitute for personalized advice. Consult your adviser about what is best for you. Some questions are edited for brevity<\/em>.<\/p>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetCommentingPromo\n              \n              inline\n  article__inset\n          article__inset--type-InsetCommentingPromo\n              article__inset--inline\n  \"><\/p><\/div>\n<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Dan Moisand\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Dan_Moisand\"><\/span>Dan Moisand<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<div class=\"mw-author-contributor\">MarketWatch Contributor Network<\/div>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7BD6023C84-671C-11EB-B5A6-CF912177DA46%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Retirement Weekly: What\u2019s new with RMDs in 2021?&#8221; Required minimum distributions are back, but they\u2019ll be changing again Q.: I heard that the RMD rules have changed? Is that true? \u2013 Kenny in Memphis A.: Have the RMD rules changed? Yes, they have changed, will change again in 2022 and may again after that. Last&#8230;<\/p>\n","protected":false},"author":1,"featured_media":171790,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-171789","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/171789","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=171789"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/171789\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/171790"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=171789"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=171789"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=171789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}