Time is running out if you’re age 73 or older and haven’t yet taken this year’s required minimum distributions (RMDs) from retirement plans such as IRAs and 401(k)s. If not withdrawn on time, RMDs are generally subject to a 25% excise tax on the amount the taxpayer should have withdrawn. If you reached age 73 before 2024, you must take RMDs by Dec. 31, 2024. If you reached age 73 in 2024, your first RMD is due by April 1, 2025. Note that Roth IRA (and similar) accounts aren’t subject to RMDs during an original owner’s lifetime. But if you inherit a retirement account, you may need to take RMDs, regardless of the plan type. Contact us for help determining your RMD obligations.
