The U.S. Internal Revenue Service (IRS) issued an alert reminding retirees that some of them are obligated to withdraw money from their retirement accounts by the beginning of next month.
“In most cases, retirees who turned 73 in 2024 must begin receiving payments from Individual Retirement Arrangements (IRAs), 401(k)s, and similar workplace retirement plans by Tuesday, April 1, 2025,” the agency said in a March 13 statement.
Such payments, known as Required Minimum Distributions (RMDs), are the amount that individuals with retirement accounts are mandated to withdraw every year. Failure to do so may be subject to penalties.
RMDs are “typically made by year-end. However, individuals who turned 73 in 2024 can delay their first RMD until April 1, 2025. This special rule applies to IRA owners and participants born after Dec. 31, 1950.”…