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How does Secure 2.0 affect Required Minimum Distributions for SIMPLE IRAs?

The Secure 2.0 Act changed the age at which Required Minimum Distributions, also called RMDs, must begin for many retirement accounts, including SIMPLE IRAs offered through WealthRabbit. RMDs are mandatory withdrawals that apply to tax-deferred retirement accounts once you reach a certain age. These withdrawals ensure that retirement savings that have not yet been taxed eventually become taxable income.

Under Secure 2.0, individuals who are born in 1960 or later will generally begin taking RMDs at age 75. Those who were born before 1960 may still have an earlier RMD start age under prior law, such as age 73. These rules apply to SIMPLE IRAs and Traditional IRAs. Roth IRAs do not require RMDs during the account owner’s lifetime.

Knowing when RMDs begin is important because failing to take the required amount may result in IRS penalties. If you have a WealthRabbit SIMPLE IRA and are approaching retirement age, understanding your RMD start date can help you plan withdrawals, manage your income, and stay compliant with federal tax rules. WealthRabbit provides easy access to your account information along with educational guidance so you can stay informed as retirement laws and contribution rules evolve.