Putting Off Retirement Plan Withdrawals: New IRS Rules Explained

Newly released IRS final and proposed rules that allow workers to keep their money in retirement accounts longer are generating confusion about when certain savers must start drawing down those funds to avoid tax penalties.

People with 401(k), 403(b), and individual retirement accounts can now keep assets in those plans past the age of 70½ without paying heavy excise taxes on withdrawals thereafter under rules finalized July 18 and scheduled to take effect on Sept. 17 (TD 10001; RIN:1545-BP82). The higher ages that trigger mandatory distributions are staggered by birth year.

But questions remain about the age requirements for ...