IRA RMD Age Increased to 73

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The Internal Revenue Service (IRS) does not wish to have individuals pass large amounts in individual retirement accounts (IRA) to their children. Due to this, the IRS stated that if an individual has an IRA, they will be required to make a required minimum distribution (RMD) once they reach the age of 72. To help this, IRA investment companies are required to reach out to the owner stating they must make a RMD to meet this requirement. Recently, the IRS issued the Secure 2.0 Act which, among other things, increased this age from 72 to 73 for those individuals who turn 72 on or after January 1, 2023. Some IRA investment companies may not have updated procedures and are using the age of 72 in sending their notices, which could cause individuals to distribute money before they are required to. In response to this, the IRS specifically stated that the owner must recognize this change and note they do not need to make the RMD.