If you’re 73 years or older, the Internal Revenue Service reminds you of important deadlines regarding required minimum distributions for those with certain retirement accounts.
An RMD is an amount that an account owner must withdraw annually. The withdrawals are considered taxable income and may incur penalties if they aren’t taken on time, according to information from IRS officials.
The IRS.gov Retirement Plan and IRA Required Minimum Distributions FAQs webpage provides detailed information regarding the new provisions in the law.
If you turned 73 in 2024:
A new law called the Secure 2.0 Act raised the age that account owners must begin taking RMDs, while eliminating RMDs for Designated Roth accounts in 401(k) and 403(b) retirement plans.
The minimum distribution rules generally apply to original account holders and their beneficiaries in these types of plans:
Designated Roth accounts in a 401(k) or 403(b) plan will not be subject to the RMD rules while the account owner is still alive for 2024. The RMD Comparison Chart outlines key RMD rules for IRAs and defined contribution plans.
Taxpayers can find easy-to-use tools such as forms, instructions and publications at IRS.gov.