Personal Finance and Investing

a couple years ago, and 75 if this bill passes into law -- are only when one MUST BEGIN taking withdrawals. One can take withdrawals at any age. One must pay taxes on what one withdraws no matter at what age one takes the withdrawals, and whether or not it is part of an RMD requirement or not.

So this is not hurting retirees, just moving to later the year one MUST begin taking RMDs. That's good for retirees, e.g. instead of HAVING TO TAKE withdrawals at 70 1/2 or 72, one will (if this passes) have the OPTION to wait until 75 to begin withdrawals.

Clarification: the above statements apply only to withdrawals from traditional IRAs. Withdrawals are tax-free from Roth IRAs, and there are no RMD requirements for Roth IRAs.

Also, if one takes withdrawals before age 59 1/2, one must additionally pay a 10% early withdrawal penalty.

For inherited IRAs, one must begin RMD withdrawals the year after the original owner passed.

Hopefully this is reasonably correct, if not complete (I didn't cover non-deductible traditional IRAs for example). I am not a financial professional.