October 15, 2025
Policy & Payouts
Congress Is Debating RMD Age—Here’s What You Need to Know
I came across a conversation this morning: “Are they going to move the RMD age to 75 sooner than planned?”
It’s a great question — and one with real impact for retirees, including many of us.
If you’re scratching your head about how your required minimum distributions (RMDs) might change — or whether your tax bill could shift — stay with me. I’ll break down the current policy debate and what you can do, starting today. 👇
🌟 Today’s Highlights
How SECURE 2.0 already bumped the RMD age — and what the next jump to 75 could look like
Tougher enforcement ahead for inherited IRAs
Proposed “withdrawal windows” and flexibility as a compromise
📊 Stat of the Day:
Under SECURE 2.0, the RMD age is 73 until 2033, then it will rise to 75 for those born in 1960 or later. (SmartAsset)
💡 Today’s Insight: What’s New & What’s Next
1. The baseline: what SECURE 2.0 already did
In 2023, Congress increased the starting RMD age from 72 → 73. (Kiplinger)
The longer-term plan is to push it again to 75 starting in 2033. (Secure 2.0 summary)
Also — missed RMD penalties have eased. They used to be 50%, now default is 25%, and they drop to 10% if corrected quickly. (Fidelity overview)
2. Inherited IRAs: the crackdown is coming
The IRS is finalizing rules for beneficiaries inheriting IRAs. Starting 2025, many heirs will have to take annual distributions (in years 1–9) if the original owner had begun RMDs, rather than just waiting for the 10-year full distribution. (Mercer on IRS rule changes)
That means there’s less wiggle room for those who inherited an account — the grace periods are contracting.
3. Proposed flexibility: a middle path?
Some lawmakers are pushing ideas like a withdrawal window — let people choose when between 73 and 75 to take their first RMD to avoid being forced to withdraw during market lows. Others want more personalized life-expectancy tables or exemptions for small IRAs. (See similar proposals in 24/7 Wall Street commentary.)
🔑 What It Means For Us
If you were born between 1951–1959, your first RMD must begin at age 73. If you were born in 1960 or later, you may have until 75 under new rules.
But — that change is not guaranteed. These are proposals; they’ll need to pass through Congress.
If you inherited an IRA, the leniency many relied on is being trimmed. The “catch-up years” may not last forever.
📬 To Do This Week:
Confirm your birth year cohort — are you in the “73” group or the “75” group under proposed rules?
If you’re a beneficiary of an inherited IRA, review whether past distributions complied with interim guidance — future clarity may expose missing years.
Start a “flexibility fund” — set aside a small amount each year now, so if you are forced to pull more later, you’ll have a cushion.
Speak with your tax or financial advisor:
Would a small Roth conversion ahead of new RMDs help?
Could timing your withdrawals in low-income years minimize tax hits?
Do your current withdrawal assumptions still make sense under the new timeline?
📬 Question for you:
If they let you choose your first RMD anywhere between ages 73 and 75 — when would you pick, and why?
Reply to this email and tell me your vote — your choice might spark next week’s case study.
💌 PS: If this landed in your Promotions tab, drag it into Primary so you don’t miss important policy updates.
With clarity,
Sarah