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RMD change points to a new normal

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The required minimum distribution rule for both qualified plans and individual retirement accounts is being pushed to 72 instead of the odd 70 ½. What does it mean? To me, it means that people are living longer and plan providers need to adjust their strategies to reflect that. The days when people would stop working at 65 are long over, people are living longer and stretching out their retirement years because they either have to or want to.

 

Whether it’s a participant population that is getting younger, older or a wider disparate age, plan providers need to understand the changes and make changes on their own to reflect that. Whether it’s target-date funds, enrollment meetings, website interfaces, there are so many things to consider and reflect that people are living longer and working longer.

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