The IRS Takes a Big Step Toward a Small Reduction in RMDs
But these changes will only help so much.
Back in January, I wrote about legislative proposals to postpone required minimum distributions and an executive order President Donald Trump wrote directing the IRS to make technical changes in the RMD calculation that also was designed to reduce these required distributions. Although legislation to push back RMDs to later ages has made it out of the House of Representatives, it remains stalled in the Senate. Unlike Congress, the IRS has been working on the issue and took an important first step toward reducing RMDs for most retirees.
This will make a lot of people happy because no one really likes RMDs, and it's easy to understand why: Who wants to take money they do not need out of their 401(k) and IRA accounts? That's particularly true for retirees who are bumped into higher marginal tax rates because of these withdrawals, especially when these RMDs increase the percentage of Social Security benefits that are subject to taxation.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.