Required Minimum Distribution (RMD)
Under current law, participants are generally required to begin taking distributions from their retirement plans at age 72. The policy behind this rule is to ensure that individuals spend their retirement savings during their lifetime and not use their retirement plans for estate planning purposes to transfer wealth to beneficiaries. The SECURE Act of 2019 increased the required minimum distribution age to 72. The SECURE 2.0 Act of 2022 further increases the required minimum distribution age further to 73 starting on January 1, 2023 - and increases the age further to 75 starting on January 1, 2033.