Section 105, Increase in age for required beginning date for mandatory distributions.
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 generally increased the required minimum distribution age to 72. The legislation would increase the required minimum distribution age further to 75.https://waysandmeans.house.gov/sites/democrats.waysandmeans.house.gov/files/documents/2.0Sectionbysection_final.pdf
This proposed legislation makes many changes to pension laws. While it’s not going anywhere soon, if at all, I found this provision rather ironic.
Policymakers, especially the political left tell us:
- Social Security is woefully inadequate
- Retirees live in retirement mostly dependent on Social Security
- Most people have inadequate savings for retirement
- Everything is unfair in favor of the wealthy
So, shouldn’t we question how future retirees, other than wealthy ones, will be able to delay using retirement funds until age 75?