“Bill to Boost RMD Age to 75 Up for First Vote Wednesday,” by Melanie Waddell, ThinkAdvisor
Quote: “The House Ways and Means Committee will vote Wednesday on the Securing a Strong Retirement Act of 2021, known as the Secure Act 2.0, which would boost the required minimum distribution age from 72 to 75.”
LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:
Here’s an important aspect of the RMD age you might not know. Medicaid LTC exempts tax-deferred retirement accounts, often hundreds of thousands of dollars, if they are paying out periodically, as they must do upon the owner’s reaching the RMD age. By bumping that age to 75, applicant/recipients will need to be three years older before they qualify for the exemption. Another important related aspect, unless Medicaid recovers from the estate, those retirement accounts as well as exempted home equity, are lost forever to support the program. MACPAC, an agency that advises Congress, recommends curtailing Medicaid estate recoveries. That would be a huge mistake as we explained in LTC Bullet: MACPAC Captured.
Subscribe to GoldenCare News