As of Jan. 1, those with a 401(k) or IRA can start withdrawing the required minimum at age 72.
Previously, account holders were required to take the minimum distribution at age 70.5.
The new rules, arising from President Trump's Secure Act, update the old rules, which were based on life expectancies in the early 1960s.
There may be some tax implications for some account holders, depending on their tax brackets in the year they withdraw. Check with a financial advisor to be sure.
The Secure Act also eliminates the maximum age for traditional IRA contributions, which was previously capped at 70.5 years old. The bill summary by the House Ways and Means Committee explains, "As Americans live longer, an increasing number continue employment beyond traditional retirement age."
Americans who turned 70.5 years old during 2019 will still need to withdraw their required minimum distributions. Failure to do so results in a 50 percent penalty.
People who are expected to turn 70.5 years old in 2020 will not be required to withdraw RMDs until they are 72.
Allyson Good curates senior living, health, and family content. She is formerly the Managing Editor of Active Life, a print newspaper published in 2016-2017 for seniors, choosing practical articles on health, money, safety, and everyday living for older readers. She is also an avid gardener and offers up Garden Hints and Tips on a regular basis.