# What This Bill Does

This bill gives people a break from having to withdraw money from their retirement accounts in 2022. Normally, once you reach a certain age (currently 73), the government requires you to take out a minimum amount of money from retirement accounts like 401(k)s and IRAs each year, whether you need the money or not. These are called "required minimum distributions." This bill temporarily suspends that requirement for the year 2022, just like the government did back in 2020 during the pandemic.

# Who This Affects

This primarily impacts older Americans who have retirement savings. If you're over the age threshold for required minimum distributions, you won't be forced to withdraw money from your retirement accounts in 2022. This is helpful if you don't need the money right now, since taking withdrawals can bump you into a higher tax bracket or affect your eligibility for certain benefits. You can still withdraw money if you want to—the bill just removes the requirement to do so.

# The Practical Impact

The main benefit is flexibility and potential tax savings. By not being forced to take distributions in 2022, you can leave your money invested longer, potentially allowing it to grow more. You also avoid the tax bill that comes with taking withdrawals. The bill also allows people to move money between retirement accounts more easily during this suspension year. For most people, this is simply a one-year pause on a rule that will resume in 2023, giving retirees some breathing room during an economically uncertain time.

To amend the Internal Revenue Code of 1986 to temporarily suspend required minimum distribution rules for certain retirement plans and accounts.

Rep. Davidson, Warren [R-OH-8]

 <p>This bill suspends in 2020 and 2022 the required minimum distribution rules for defined contribution retirement plans or individual retirement plans. Under current law, participants in tax-exempt retirement plans must begin making distributions of plan amounts at the required beginning date (i.e., April 1 or the calendar year following the later of the calendar year in which the employee attains age 72, or the calendar year in which the employee retires).</p>