As April 1 approaches, retirees must take note of the looming deadline for filing Required Minimum Distributions (RMDs). Those who turned 73 in 2024 must send their first RMD by December 31 or face a 25% penalty fine from the IRS. The correct amount is based on a life expectancy factor and divided by the account balance prior to December 31.
For those inheriting an IRA, failing to comply with IRS standards can also trigger a 25% penalty. Non-spouse heirs must empty inherited accounts by no later than after the account owner’s death. IRAs are subject to RMD rules, except for spouses, minor children, disabled individuals, and certain trusts, which follow a 10-year rule.
Retirees should take note of these deadlines to avoid penalties from the IRS and ensure there is no impact on Medicare Part B and D premiums. Failing to file by April 1 will result in penalties, so it’s essential to plan ahead and meet the RMD requirements.
Source: https://www.marca.com/en/lifestyle/us-news/personal-finance/2025/03/30/67e93134ca47412b788b4591.html