IRS warns retirees about April 1 withdrawal deadline

The Internal Revenue Service (IRS) has issued a warning for retirees about an important deadline approaching next week. Retirees who turned 73 in 2024 need to start receiving payments from their retirement accounts by April 1, 2025. These payments are known as required minimum distributions (RMDs). Typically, retirees must begin to withdraw a minimum amount from their traditional retirement accounts, like IRAs and 401(k)s, when they turn 73. Although many retirees usually make these withdrawals by the end of the year, those who delay their first RMD until April 1 must remember this deadline. The IRS noted that most participants in workplace retirement plans can wait until April 1 to receive their initial distributions. However, this delay does not apply to business owners holding 5% or more of the company or to those in SEP and SIMPLE IRA plans. It's important to remember that the April 1 deadline applies only to the first year's payment. After that, retirees must take their RMDs by December 31 each year. If retirees choose to delay their payment to April 1, they should expect to report both the first RMD for 2024 and the second for 2025 on their 2025 tax return, as both are taxable in that year.