Good news for your retirement journey

• Now, those turning 72 in 2023 can delay taking the first RMD until December 31, 2024―a full year later. You also have the one‐time IRS option to delay that first RMD to no later than April 1, 2025. However, if you wait until April 1, 2025, you'll be required to take two distributions in 2025, satisfying your first and second RMD.
• Previously (SECURE 1.0), if you turned age 72 in 2023, you had until December 31, 2023, to take your first RMD. However, there was also a one‐time IRS option to delay that first RMD until April 1, 2024.

They are already effective, as of January 1, 2023.

Yes. Under SECURE 2.0, the starting age to take RMDs will rise again to age 75 in 2033.

• If you reached age 72 on or before December 31, 2022, nothing changes. You must continue taking RMDs as scheduled each year. The new RMD starting age of 73 applies to IRA owners who turned age 72 on or after January 1, 2023.
• If you turned 72 in 2022, you need to take the first RMD no later than April 1, 2023, and then continue taking RMDs as necessary in 2023 and future years. 

If you turn age 72 in 2023 and have an automatic withdrawal plan in place for RMDs, the new law lets you start your withdrawal plan a year later, when you turn age 73. If you've set up an automated withdrawal plan to begin RMDs in 2023, speak with your tax professional to decide whether delaying an extra year is appropriate and beneficial for you.

No. Once you reach age 59 ½, you won’t incur an early withdrawal penalty, but you may need to pay federal and state income tax, if applicable.

Your IRA withdrawal in 2023 is not considered an RMD. That’s because you’re now eligible to start taking RMDs when you turn age 73. You can follow normal rules for 60‐day rollovers from the distribution date to redeposit your withdrawal into your IRA. Before redepositing your funds, keep in mind:

• Only one 60‐day rollover in a 12‐month period is allowed under IRS rules. Consult with a tax professional before doing a 60‐day rollover to ensure whether you're eligible.
• If you withheld taxes from your distribution, you will need to redeposit the amount to your IRA account out of pocket, and should receive a credit in that amount when you file your taxes for 2023.

If you qualify and are within the 60‐day period of the original distribution date, you can complete a rollover contribution for your 2023 withdrawal. Reach out to your financial advisor to determine how to send your rollover contribution--via check, a transfer from another account, or transfer from a bank account.

If you are a customer of Corebridge Financial, you are also able to make a rollover deposit by check via Corebridge’s mobile app (excluding inherited IRAs).

SECURE 2.0 reduces the penalty for missed RMD amounts from 50% to 25%. If you miss all or part of your RMD in a given year, you can request the penalty be reduced to 10% by (a) taking your missed amount and (b) filing a corrected tax return within the applicable period. Consult with your tax professional if you believe you may owe an excise tax on a missed RMD.

Yes, beginning with 2024 RMDs assets in a Roth contribution source will be exempt from the RMD requirements, rules will be consistent with Roth IRA rules.

Under SECURE 2.0, the RMD rules for inherited IRAs left to beneficiaries remain unchanged. Consult with your tax professional about how RMDs work with an inherited IRA.

SECURE 2.0 was included in the Consolidated Appropriations Act of 2023, which you can access and view in full at www.congress.gov. Corebridge will continue to publish SECURE 2.0 information and additional resources at corebridgefinancial.com/secureact as it becomes available.