Retirement funds cannot be kept in your account for an unlimited amount of time. You will need to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account once you reach a certain age.
Beginning in 2023, the SECURE 2.0 Act raised the age that you must begin taking RMDs to age 73. If you reach age 72 in 2023, the required beginning date for your first RMD is April 1, 2025, for 2024.
Roth IRAs do not require any withdrawals until after the death of the owner.
What is the beginning date for my first RMD?
IRAs (including SEPs and SIMPLE IRAs):
- April 1 of the year following the calendar year in which you reach age 72 (73 if you reach age 72 after Dec. 31, 2022).
401(k), profit-sharing, 403(b), or other defined contribution plan Generally, April 1 following the later of the calendar year in which you:
- reach age 72 (73 if you reach age 72 after Dec. 31, 2022), or
- retire (if your plan allows this). You can view this comparison chart for additional information regarding different types of plans.
What date do I need to take my RMD after the first distribution?
You must take your first required minimum distribution for the year in which you reach age 72 (73 if you reach age 72 after Dec. 31, 2022). However, you can delay taking the first RMD until April 1 of the following year. If you reach age 72 in 2022, you must take your first RMD by April 1, 2023, and the second RMD by Dec. 31, 2023.
If you reach age 72 in 2023, your first RMD for 2024 (the year you reach 73) is due by April 1, 2025.
Every year after your first required beginning date, you will need to withdraw your RMD by December 31.
What happens if I don’t take my RMD on time?
If you fail to take your full RMD on time, the amount not withdrawn is taxed at 50%. You must file form 5329 on your federal tax return for the year that the full RMD was not taken.
The IRS can waive part or all of this tax if you can show that any shortfall in the amount of distributions was due to reasonable error and you are taking reasonable steps to remedy the shortfall. In order to request a waiver of the penalty for late withdrawal or your RMD you should complete form 5329 and enter your reason for requesting a waiver
RMD was not required for tax year 2020
A taxpayer is not required to take RMDs in tax year 2020. This applies whether the distribution is one required after the initial RMD, or an initial distribution that would normally be required by April 1, 2020 for a taxpayer reaching age 70 and 1/2 in tax year 2019.
If you had an RMD for 2020 due by April 1, 2021, you were not required to take that distribution in April
2021. You were only required to take the distribution due by December 31, 2021 and so on for future years.