The age for Required Minimum Distributions (RMDs) has been increased to 72
The age for RMDs was increased from 70 ½ to 72, effective January 1, 2020. This only affects investors who turn 70 ½ in or after 2020. If you turned 70 ½ in 2019 you are not impacted.
The age cap for Individual Retirement Account (IRA) contributions has been removed
Previously, investors aged 70 ½ and older were ineligible for IRA contributions. Effective January 1, 2020, there will be no age restriction on contributions. However, while there is no age restrictions, contributors to an IRA must earn an income.
Inherited retirement accounts must be fully distributed within 10 years of the inheritance
On and after January 1, 2020, investors who inherit a retirement account have 10 years to distribute the account in its entirety (the remaining balance will be distributed as an RMD on the 10th year of the inheritance). In general, inherited account distributions can no longer be stretched across the inheritors lifespan. There are exceptions to the rule, however. Spouses, inheritors no more than 10 years younger than the original account owner, inheritors with disabilities, and minor children are excluded from the 10-year rule.