Bullitt
Well-known member
Some changes up ahead that could impact your TSP retirement planning in a positive way.
2023
* RMDs raised to 73 from 72 (or 70½ before the original Secure Act in 2020).
* The penalty for missed RMDs is reduced from 50% to 25% and even 10% if corrected in a “timely” manner.
2024
* The $1,000 catch-up contribution to IRAs and 401(k)s for those age 50 and older will be indexed for inflation.
* Roth 401(k) contributions will no longer be subject to RMDs during the owner’s lifetime, since the money has already been taxed when contributed.
https://www.wsj.com/articles/retirement-savings-changes-2023-1b2e99f0
2023
* RMDs raised to 73 from 72 (or 70½ before the original Secure Act in 2020).
* The penalty for missed RMDs is reduced from 50% to 25% and even 10% if corrected in a “timely” manner.
2024
* The $1,000 catch-up contribution to IRAs and 401(k)s for those age 50 and older will be indexed for inflation.
* Roth 401(k) contributions will no longer be subject to RMDs during the owner’s lifetime, since the money has already been taxed when contributed.
https://www.wsj.com/articles/retirement-savings-changes-2023-1b2e99f0
