Changes to RMD Rules and Regulations
March 27, 2025
If you have executed a solid retirement plan, your accounts may contain more money than you need to have on hand on any given day. While that is a good problem to have, you should stay alert to regulations to make sure you are not being penalized due to missing your RMD obligation.
Many accounts, such as traditional IRAs, 401(k)s, and other qualified retirement plans, have required minimum distributions (RMDs) once you reach a certain age. These withdrawals are mandatory. They are designed to ensure you start using your retirement savings during your lifetime.
For 2025, the age at which you must begin taking RMDs remains at 73. This follows the changes introduced by the SECURE Act 2.0. It requires that if you turn 73 in 2025, you must take your first RMD by April 1, 2026. Subsequent RMDs must be taken by December 31 of each year.
If you do not withdraw the required amount, you may be subject to a penalty of 25% of the amount that was not withdrawn. RMDs are adjusted annually. They are calculated based on account balances from December 31 of the previous year. It is important to stay informed about the exact amount you must withdraw.
Having an experienced professional to guide you can help your bottom line. Schedule a consultation to find out how to be savvy and informed when planning your retirement.
https://money.usnews.com/money/retirement/401ks/articles/new-rmd-rules