What's The First RMD Year for Those Born in 1959?
If you were born in 1959, you may have heard conflicting answers about when you need to start taking required minimum distributions (RMDs). The confusion comes from a drafting error in the SECURE 2.0 Act that appeared to give people born in 1959 two different RMD starting ages.
The issue matters because your first RMD year determines when you must begin taking withdrawals from certain retirement accounts. The original SECURE 2.0 language created an overlap between people born before 1960 and those born in 1959. The IRS later addressed the issue in proposed regulations issued in July 2024.
What Is the RMD Age for Someone Born in 1959?
Under the interpretation outlined by the IRS in its July 18, 2024, proposed RMD regulations, someone born in 1959 reaches their first RMD age at 73.
The confusion comes from two provisions in the SECURE 2.0 Act. The law stated that the RMD age would be 73 for people born on or after January 1, 1951, and before January 1, 1960. It also stated that the RMD age would be 75 for people born on or after January 1, 1959.
That wording created an overlap. A person born in 1959 technically fell within both groups, which appeared to give them two different starting ages: 73 and 75.
Why Did People Born in 1959 Have Two RMD Ages?
The issue resulted from a drafting error in SECURE 2.0.
For example, actor Jason Alexander, who played George Costanza on Seinfeld, was born on September 23, 1959. Under the first provision, he would have an RMD age of 73 because he was born before January 1, 1960. Under the second provision, however, he would have an RMD age of 75 because he was born on or after January 1, 1959.
Obviously, an individual cannot have two different first RMD ages. Members of Congress recognized the problem and, in May 2023, four high-ranking members from both parties sent a letter to the IRS stating that they intended to introduce legislation to correct the error and other issues in SECURE 2.0.
That legislation had not been enacted by the time the IRS issued its proposed regulations in July 2024.
How the IRS Addressed the 1959 RMD Problem
The IRS addressed the ambiguity in proposed RMD regulations issued on July 18, 2024. Under the IRS interpretation, the rules should read as follows:
- Age 73: Individuals born on or after January 1, 1951, and before January 1, 1960.
- Age 75: Individuals born on or after January 1, 1960.
Under this interpretation, people born in 1959 have one RMD starting age: 73. And the RMD ages would be as follows:
Source: Ed Slott & Company, LLCWhen Would the First RMD Be Due?
Your RMD age and the year you must actually take your first RMD are related, but they are not necessarily the same.
For someone whose applicable RMD age is 73, the first RMD generally relates to the year they reach age 73. The rules can allow the first RMD to be delayed until April 1 of the following year. However, that delay can result in two RMDs being required during the following calendar year because the next year's RMD remains due by December 31.
Because the timing of a first RMD can affect taxes and cash flow, retirement account owners should pay attention to both the year they reach their RMD age and the deadline for taking the distribution.
Could the RMD Rules for 1959 Births Change Again?
The IRS's proposed regulations addressed the drafting problem, but the source article noted uncertainty about whether the IRS had the authority to make the correction.
That concern became more significant after the U.S. Supreme Court issued its Loper Bright Enterprises v. Raimondo decision in 2024. The decision changed how courts approach agency interpretations of federal laws and gave judges more authority to reject certain agency interpretations.
As a result, the question was not simply whether the IRS had provided a practical solution. There was also a legal question about whether Congress itself needed to correct the SECURE 2.0 language.
For anyone born in 1959, this distinction matters because the applicable RMD age affects retirement withdrawal planning. Retirement account owners should review the current rules before deciding when to take their first distribution.
What Should People Born in 1959 Do?
If you were born in 1959, the IRS's July 2024 proposed regulations treated age 73 as your first RMD age. The original SECURE 2.0 language created the confusion, but the IRS interpretation removed the overlap by placing people born in 1959 in the age-73 group.
The timing of your first distribution can affect your taxable income, future retirement withdrawals and overall tax planning. Before delaying a first RMD until the following April, consider the potential effect of taking two RMDs in the same calendar year.
RMD Rules for People Born in 1959: FAQ
What is the RMD age for someone born in 1959?
Under the IRS's July 2024 proposed regulations, the first RMD age for someone born in 1959 is 73.
Why was there confusion about the RMD age for 1959?
SECURE 2.0 contained overlapping language that appeared to place people born in 1959 in both the age-73 and age-75 groups.
Can someone born in 1959 wait until age 75 to take an RMD?
The source material identifies age 73 as the IRS's proposed interpretation for people born in 1959. The article does not support treating age 75 as the applicable RMD age.
When must the first RMD be taken?
The first RMD generally applies to the year you reach your applicable RMD age. The rules can allow the first distribution to be delayed until April 1 of the following year.
Why does the first RMD deadline matter?
Delaying the first RMD can result in two RMDs falling within the same calendar year, which can increase taxable income for that year.
What is the RMD age for someone born in 1960?
Under the IRS interpretation described in the source, someone born in 1960 has an RMD age of 75.
Did SECURE 2.0 create the RMD age confusion?
Yes. The wording in SECURE 2.0 created an overlap between the age-73 and age-75 birth-year groups, which created the unusual situation for people born in 1959.
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Christian Cordoba, founder of California Retirement Advisors, has been a member of Ed Slott's Master Elite IRA Advisor Group since 2007.