Notice from Fidelity: Required Minimum Distribution (RMD) Changes Effective in 2023

From Fidelity:

This week, SECURE Act 2.0 is expected to be signed into law as part of a larger government spending package. SECURE Act 2.0 includes many provisions designed to help Americans save for retirement. Most provisions included in SECURE 2.0 go into effect in 2024 or later. SECURE Act 2.0, however, did include changes to RMD rules that become effective on January 1, 2023. Most immediately impactful is the required beginning age for RMDs being increased from age 72 to 73.

Fidelity will update RMD systems to exclude IRA and Retirement Plan account owners turning age 72 in 2023 from RMD calculations and services. Fidelity will also ensure these account owners do not receive RMD notification as part of the annual Form 5498 tax process. Fidelity is currently conducting analysis of the SECURE Act 2.0 provisions and determining plans to address additional areas of impacts for the RMD age change, including forms, agreements, marketing materials, P&Ps, Online Reference, and reporting.

Fidelity will not make any updates to RMD Systematic Withdrawal Plans already established for any clients turning age 72 in 2023.

Note from ESI: Registered Reps should review these distribution plans and confirm that clients still want to receive distributions in 2023.  If any changes need to be made to existing periodic withdrawal plans, please contact ESI Operations at 800-344-7437.

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