As 2025 approaches, it’s essential for retirees to stay on top of key deadlines to avoid missing out on critical retirement benefits. The IRS is reminding seniors to take the required minimum distributions (RMDs) from their retirement accounts before December 31.
Retirees aged 73 or older must withdraw a certain amount each year from their Individual Retirement Accounts (IRAs) and other retirement savings plans, known as RMDs. If they don’t meet this deadline, they may face penalties. The IRS treats these withdrawals as taxable income.
To avoid common mistakes, retirees can use the IRS-provided worksheets or tools to calculate the correct withdrawal amount. It’s also crucial to remember that if you have multiple retirement accounts, you must withdraw the total RMD amount from each one separately.
Roth IRAs are exempt from RMDs during an individual’s lifetime, but there are specific rules for inherited accounts. Retirees can take out more than the required minimum, but they must report and tax any taxable portion according to IRS rules.
Source: https://eladelantado.com/en/irs-rmd-deadline-december-31