The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: RMDs to change to 72 Date:  5/29/2019  12:01 AM
Author:  aj485 Number:  93761 of 100397

Personally, I would like to see the Life Expectancy Factors in the IRS' Universal Lifetime Tables reduced to ensure that there is sufficient wealth to support those in their late nineties and the expanding centenarian population.

I don't think that updating the tables will make any difference in that regard. Just because an RMD is taken out of a retirement account doesn't mean that the money can't be reinvested in a taxable account. And nothing can stop people from taking out more than the RMD says that they have to take out. For example, even the penalties currently in place to prevent people from taking out money prior to 59 1/2 don't work to keep people from taking money out of their accounts. And there are even more people who use one of the exceptions, like first time home purchase or educational expenses, to take money out penalty (but not tax) free.

It's more likely that the reason that people will run out of money as they reach their late 90s or 100s is that they didn't plan for a retirement that would last that long, rather than being forced to take too much money out of their retirement account for the account to last.

Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us