Yes, the required minimum disbursement age for retirement age account withdrawals is increasing to 73 in 2023.

Under the SECURE Law 2.0 of 2022, the age at which retirees can make RMD or minimum withdrawals from their retirement accounts is being raised to 73 this year.

Retirees in the United States cannot keep pension funds in their accounts indefinitely. Instead, the Internal Revenue Service (IRS) requires seniors to receive the required minimum payment (RMD) from their traditional retirement savings accounts (such as 401K) each year when they reach the required withdrawal age.

In 2019, a law known as the SECURE Act increased the age for RMD from 70 1/2 to 72, according to the IRS. But a VERIFY viewer recently asked in an email if RMD’s age will increase to 73 in 2023.


Will the required minimum age of distribution (RMD) change to 73 this year?



Yes, this year the required minimum giveaway age (RMD) is changing to 73.


On December 29, 2022, President Joe Biden signed the Consolidated Appropriations Act of 2023 (HR2617) into law. The $1.7 trillion spending bill would allow the federal government to run until the end of the federal budget year in September 2023.

The 4,155 page bill includes a pension package known as the SECURE 2.0 Act of 2022. The new law builds on the original SECURE Act, which was approved by Congress and signed into law in 2019. The SECURE Act of 2019 increased the age for required minimum distributions (RMD) from 70 1/2 to 72.

One of the more notable provisions of the SECURE 2.0 Act is that the bill increases the age at which people must start receiving RMD from their retirement account from 72 to 73 starting January 1, 2023. The SECURE 2.0 law will also eventually increase the RMD age to 75 starting January 1, 2033.

The Motley Fool, a privately held financial and investment advisory company based in Alexandria, Va., explains in an article on its website that if a person turns 72 in 2022 or earlier, they will need to continue taking RMD as usual. But if a person turns 72 in 2023, they can wait another year.

This means that if you turn 72 in 2022 or earlier, you will need to continue taking RMD as scheduled. But if you turn 72 in 2023 and have already scheduled a withdrawal, you may want to consider updating your withdrawal plan, according to Fidelity Investments.

“Those celebrating their 72nd birthday in 2023 will need to receive their first RMD by December 31, 2024, or defer their initial RMD until April 1, 2025,” says The Motley Fool. “But if you choose to delay until April 2025, you will need to take your second RMD for the same year by December 31, 2025.”

In addition to raising the RMD age to 73, SECURE 2.0 also reduces penalties for individuals who do not take RMD. It also changes the amount of catch-up contributions for workers aged 60 to 63 with workplace plans, according to The Motley Fool, Fidelity Investments and Charles Schwab Corporation. Other important provisions of the SECURE 2.0 law include:

  • Employees who have a Roth 401(k) will not need to withdraw RMD from their account starting in 2024.
  • Beginning in 2024, employers will be able to match student loan payments with a contribution to an employee’s retirement account.
  • Employers will also have the option to allow employees to create “rainy day funds” in their retirement plan.
  • Victims of domestic violence can withdraw up to $10,000 from their retirement account without penalty.
  • Individuals can withdraw up to $22,000 from an employer-sponsored plan or IRA in the event of federally declared disasters.
  • Individuals can transfer up to $35,000 of $529 that has been in existence for at least 15 years to a Roth IRA in the name of a beneficiary student.
  • Long-term part-time workers will become eligible for their company’s pension plan after two consecutive years of working at least 500 hours.
  • Creation of a national “lost and found retirement savings” database to help people find their benefits if they change jobs or if the company they worked for moves, changes its name or merges with another company.

The Associated Press contributed to this report.

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