• Required minimum distributions, or RMDs, are amounts that must be withdrawn annually from qualified retirement savings accounts.
• If the RMD age is raised to 75 from 72, it would provide more time to move assets to a Roth individual retirement account, which comes with no RMDs during the owner’s lifetime.
• There are some instances when you may not want to convert money from a traditional 401(k) plan or IRA to a Roth.

Some future retirees could end up getting more time to amass a heap of money that won’t be taxed when they or their heirs tap it.

Under a provision in a federal retirement bill that cleared the House of Representatives last month, required minimum distributions, or RMDs, from qualified accounts would eventually start at age 75, up from the current age of 72. RMDs are amounts that must be withdrawn annually from most retirement savings — i.e., 401(k) plans or individual retirement accounts — under federal law.

If the proposed RMD age change makes it through Congress, the benefit would go to those who want to move assets to a Roth IRA from traditional 401(k) plans or IRAs.

While taxes apply to the amount converted, Roth accounts have no RMDs during the owner’s lifetime and qualified withdrawals down the road are tax-free — which is in stark contrast to traditional 401(k) plans and IRAs.

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