New federal law changes IRA rule
A change in federal law regarding required minimum distributions from individual retirement accounts means some people will not have to start taking distributions in 2020.
Marion lawyer Bob Brookens said under old law, IRA owners were required to start taking minimum distributions the year they turn 70½. The new law, which went into effect Jan. 1, changes the age to 72.
“If under the old law a person was required to take a first minimum distribution from a traditional IRA in 2019, they will still be required to do so,” Brookens said. “If they haven’t done so yet, they can talk to their tax adviser or the person holding their IRA on how to do that.”
If a person would have been required to take a first minimum distribution in 2020, they might be allowed to put it off. Brookens advises people to talk to their tax adviser or the organization that holds their IRA before taking any action.
“It could depend on their specific situation,” Brookens said. “Their birth date has a lot to do with it.”
IRA holders who were required to take their first distribution in 2019 will continue to have to take minimum distributions.
Last modified Feb. 6, 2020