, Columnist
New Retirement Rule Delaying Withdrawals Could Bite
As of next year the IRS will allow you to postpone distributions from your 401(k) or IRA until you’re 73, but you and your heirs might face an unexpected tax hit.
Postponing retirement plan withdrawals can have hidden consequences.
Illustration: Christine Vanden Byllaardt
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Wealthy retirees seem to have scored big in Congress’ sweeping year-end spending package.
The legislation signed by President Joe Biden Thursday includes changes to retirement plans that will push up the age people are required to start withdrawing from their IRAs and 401(k)s to 73 next year from the current 72, and extend it to 75 in 2033.