Generally, retirees who turned age 73 in calendar year 2024 must begin receiving payments from individual retirements accounts (IRAs), 401(k)s, and similar retirement plans by Tuesday, April 1, 2025.
Required minimum distributions (RMDs) are payments generally made by year end. However, under the statutory provisions, individuals who turned 73 in calendar year 2024 are permitted to delay their first RMD until April 1, 2025. The special rule applies to IRA owners and participants born after December 31, 1950.
The April 1 RMD deadline only applies to the first-year payment obligation. In subsequent years, the distribution must be made by December 31.
Taxpayers receiving their first required distribution for 2024 and 2025 (by April 1) must also take their second RMD required for calendar year 2025 by December 31, 2025. Both distributions are taxable in calendar year 2025 and are reported on the individual's 2025 income tax return. (If a participant who turned 73 in 2024 and received their RMD in 2024, then this special double up rule is not applicable to them but rather they are only required to take the 2025 RMD by December 31, 2025.)
Note, there is a major exception for Roth IRAs that are not subject to the required minimum distribution rules.
The April 1 deadline applies to all traditional IRA owners as well as most employer retirement plan participants. There is an exception for employer plans who may be able to delay their RMD under the special exception. The exception applies to those participants that can delay until April 1 after retiring to receive distributions from their employer plan if the plan permits it. This exception does not apply to 5% business owners or to participants in a SEP or Simple IRA plan.
Public school employees and certain tax-exempt organization staff with pre-1987 403(b) plan accruals should consult their employer, plan administrator, or provider for guidance on handling these accruals.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
