Retirees Turning 73 in 2024 Must Take RMDs by April 1, 2025

If you turned 73 in 2024, you’ll want to remember an important deadline: You must take your first required minimum distribution (RMD) from tax-advantaged retirement accounts by Tuesday, April 1, 2025. This rule applies to individuals born after December 31, 1950, and affects IRAs, 401(k)s, and other workplace retirement plans.

Understanding Required Minimum Distributions (RMDs)

RMDs are mandatory withdrawals from specific retirement accounts to prevent indefinite tax deferral. While most retirees must take their RMDs by December 31 each year, those taking their first RMD at age 73 can delay the initial withdrawal until April 1 of the following year.

However, delaying your first RMD means you’ll have to take two distributions in 2025:

• One for 2024, due by April 1, 2025
• One for 2025, due by December 31, 2025

Since both withdrawals will be taxable in the same year, this could push some retirees into a higher tax bracket.

Who Must Take RMDs?

The RMD rules apply to account holders of:

• Traditional IRAs
• Simplified Employee Pension (SEP) IRAs
• Savings Incentive Match Plan for Employees (SIMPLE) IRAs
• 401(k), 403(b), and 457(b) plans

Roth IRAs are exempt from RMDs unless they are inherited accounts.

IRA trustees are required to either calculate the RMD for account holders or provide the necessary information to do so. This amount is typically reflected on Form 5498, where the 2024 RMD amount will appear on the 2023 Form 5498.

Is the April 1 Deadline Mandatory?

For most traditional IRA owners and retirement plan participants, the April 1 deadline is mandatory. However, some workplace retirement plans allow employees to delay RMDs until they retire—unless they own 5% or more of the business. SEP and SIMPLE IRA owners cannot delay their RMDs.

If you’re unsure about your RMD requirements, consult with a CPA or financial advisor to avoid penalties and optimize your tax strategy.