Deadline for Retirees Taking Their First RMDs is April 1

Most retirees who turned 73 last year must begin withdrawing their first required minimum distribution from their retirement plan by April 1, per Internal Revenue Service rules. In the following years, RMDs must be taken by Dec. 31.

The RMD rule applies to owners of traditional, Simplified Employee Pension, and Savings Incentive Match Plan for Employees IRAs. It also applies to participants in 401(k), 403(b) and 457(b) plans, with Roth IRA participants exempt. Although RMDs are usually taken by the end of the year, retirees who reached the age of 73 in 2024 are allowed to delay their first one until April 1.

However, the IRS is reminding retirees who take their first distribution April 1 that they must also take their second RMD before the end of the year, and that they are both taxable in 2025. Additionally, IRA trustees are required to either notify IRA owners what their RMD is or offer to calculate the distribution amount.

According to the IRS, the RMD is calculated by dividing the account balance as of the end of the immediately preceding calendar year by the distribution period from the IRS’s “Uniform Lifetime Table.” The IRS also provides RMD worksheets to help retirees calculate the RMD.

For those taking a 2024 required minimum distribution due April 1, the IRS suggests consulting the life expectancy tables in appendix B of publication 590‑B, Distributions from IRAs. The IRS notes that Table III shows that the RMD for someone who is 73 years old in 2024 is typically based on a 26.5-year distribution period and that the balance as of Dec. 31, 2023, should be divided by 26.5 to calculate the 2024 RMD.