New RMD rules for 2022 – Don’t miss this change!

Most people are unaware the IRS has changed RMD rules again! If you have a tax-deferred account like an IRA make sure you know the new rules.

New RMD rules for 2022

Watch Here:

Show Notes:

Full transcript:


Anthony Saffer & Alex Okugawa

Anthony Saffer 0:00
Most people are unaware that the IRS has changed the required minimum distribution rules again. If you have a tax-deferred retirement account like an IRA, you’ll want to stay tuned.

Alright Alex, so because people are living longer, the IRS changed the RMD tables. RMD stands for required minimum distributions, basically, those mandatory distributions from retirement accounts.

Alex Okugawa 0:26
Typically, the IRS will put out a table or like a little worksheet for you to figure out your RMD. Now, again, if you go and search “IRS RMD table for 2022”, I do not believe the IRS has formally published that table yet. But Michael Kitces, has actually posted a table that shows you the breakdown of what the old RMD factors are, and what the new RMD factors are. So we’ll post that in the show notes so people have that available to them.

Anthony Saffer 0:51
Most people aren’t aware of these changes. So if you if you found this video helpful, please make sure to like it and share it with others so they can understand what they can do with their retirement plan. So these these RMD changes, they also impacted inherited IRA’s. So if you inherited an IRA from somebody else, especially prior to 2020, that’s also affected.

Alex Okugawa 1:11
The good news is with these tables, they actually allow you to take out less RMD than you have in the past. And so for a lot of people, this is a good thing. Now let’s do a quick recap on how this all works. Okay. So again, typically, the way this is calculated is you take your previous year ending account balance, and you divide that by what’s called an “RMD Factor.” That’s typically what’s on the IRS RMD table. But let’s take a look at an example. Let’s put some meat on the bones here, let’s say John, he’s age 85. his Ira balance on December 31, of 2021, was $1.6 million. Okay. So his RMD for 2022, under the old rule would be $108,108. His RMD in 2022, Under the new rule is $100,000. Right. So that’s a difference of $8,108. This is extra money that John, A. Does not have to pull out of his account, he can leave it in the account to continue to grow tax deferred. And B. He doesn’t have to pull it out, and then also pay taxes on that withdrawal. So a good win, right?

Anthony Saffer 2:25
We do want to remind people that this is a minimum or it’s a mandatory amount. So if people want to take out more, they certainly could. But in order to keep more than in their IRA, keep it invested, allow it to grow for the long term. It allows them to do that.

Alex Okugawa 2:38
Exactly. And the QCD strategy, like you described, the qualified charitable distribution is a great way to give charitably, meet your charitable goals, but also do it in a tax efficient way. And we’ve written a blog post about that. So we’ll post it in the show notes.

Anthony Saffer 2:51
We’re big proponents of that qualified charitable distribution strategy. These are the types of things that we like to help people with. If you found this video helpful, please share it with others. Make sure you subscribe. It helps people to plan for their successful retirement. And if you have further questions and are looking for a financial advisor, go to We’d love to talk.

This does not constitute an investment recommendation. Investing involves risk. Past performance is no guarantee of future results. Consult your financial advisor for what is appropriate for you. See our website at for full disclosures.

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