No Required Minimum Distributions (RMDs) until age 72

Are required minimum distributions (RDMs) important to most people?
Well, perhaps not all, but some seniors didn’t like being ‘forced’ to take distributions out when they didn’t feel they needed to. These distributions kick in when seniors turn 70 ½, yet those who worked at that time could hold off on these requirements. Still, this only applies if it fits the company’s plan- which could state otherwise and until you officially retire.

Thanks to the SECURE Act, seniors are able to avoid these distributions until they turn 72. Though we also have bad news for those who already turned 70 1/2 in 2019 as these changes do not apply to them.

Still want to avoid RDMs? Most retirees chose to convert pre-taxed 401(k) into Roth IRAs. The only downside is that you’ll be required to pay taxes on the conversion, though the rate will be lower.