IRS reminds retirees: April 1 final day to begin required withdrawals from IRAs and 401(k)s

The Internal Revenue Service (IRS) has issued a timely reminder for retirees: If you turned 73 in 2024, you must begin taking required minimum distributions (RMDs) from your retirement accounts by April 1, 2025.

This rule applies to most holders of Individual Retirement Arrangements (IRAs), 401(k)s, and similar employer-sponsored retirement plans. Missing the deadline could result in steep tax penalties.

Why April 1, 2025, Matters

Under federal law, retirement account holders must begin withdrawing a minimum amount each year once they reach a certain age. In 2023, the age was raised to 73. For anyone reaching that milestone in 2024, the IRS is offering a grace period for their first RMD — it can be postponed until April 1 of the following year.

But there’s a catch: Two RMDs may be due in 2025. If you delay your 2024 withdrawal to April 1, 2025, you still need to take your 2025 distribution by December 31, 2025. Both payments will count as taxable income for 2025 and must be reported on your 2025 tax return.

Which Accounts Are Affected?

The RMD rules apply to a wide range of retirement accounts, including:

• Traditional IRAs
• SEP IRAs (Simplified Employee Pension)
• SIMPLE IRAs (Savings Incentive Match Plan for Employees)
• 401(k), 403(b), and 457(b) plans

Roth IRAs are excluded from RMD requirements during the owner’s lifetime.

Calculating Your Required Distribution

Not sure how much you need to withdraw? The IRS requires account custodians (like banks or brokerage firms) to either:

• Notify you of your RMD amount, or
• Offer to calculate it for you

This amount often appears on Form 5498, in Box 12b, based on your account balance as of December 31, 2023.

To estimate your RMD yourself, the IRS provides life expectancy tables in Publication 590‑B. For most people turning 73 in 2024, the standard distribution period is 26.5 years, meaning you’d divide your year-end account balance by 26.5.

Married individuals whose spouse is more than 10 years younger and is the sole beneficiary should use Table II instead of the standard Table III.

Exceptions and Special Circumstances

Some employees may be able to delay RMDs beyond age 73 — but only if:

• They are still working, and
• Their workplace retirement plan allows it

This exception doesn’t apply to:

• Individuals who own more than 5% of the company sponsoring the plan
• SEP and SIMPLE IRA holders

Employees of public schools or tax-exempt organizations with 403(b) contributions made before 1987 may have different requirements and should consult their plan administrator.

Resources and Tools

The IRS offers extensive online help:

• Required Minimum Distribution FAQs
• Publication 575 – Pension and Annuity Income
• Publication 590-B – IRA Distributions

In Summary

If you turned 73 this year, don’t ignore the April 1, 2025, deadline for your first required withdrawal. Planning ahead now can help you avoid tax headaches — and possibly a double payout next year.

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