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Retirees Face April Deadline for RMDs to Avoid Penalties

3/30/2025

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Summary

Story summary

Retirees must complete Required Minimum Distributions (RMDs) by April 1, 2024, to avoid a 25% IRS penalty.
Individuals turning 73 in 2024 need to withdraw their first RMD, based on IRS life expectancy tables.
Withdrawals from pre-tax accounts incur income tax; aim to complete these by December 31.
Inherited IRAs have a 10-year withdrawal requirement for non-spouse heirs to avoid penalties.

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Story summary

Retirees must complete Required Minimum Distributions (RMDs) by April 1, 2024, to avoid a 25% IRS penalty.
Individuals turning 73 in 2024 need to withdraw their first RMD, based on IRS life expectancy tables.
Withdrawals from pre-tax accounts incur income tax; aim to complete these by December 31.
Inherited IRAs have a 10-year withdrawal requirement for non-spouse heirs to avoid penalties.