Retirees: Time to Claim Your Hard-Earned Retirement Income—IRS Sets April 1 Deadline

Russell Sawayn
Published Mar 19, 2025

Retirees: Time to Claim Your Hard-Earned Retirement Income—IRS Sets April 1 Deadline

Retirees turning 73 in 2024 are reminded by the IRS that it’s time to start collecting their well-deserved retirement savings.


For many, this will be the first Required Minimum Distribution (RMD) from IRAs or workplace retirement plans like 401(k)s and 403(b)s.

This marks a crucial milestone — turning your retirement savings into a steady source of income.

 

When Does It Happen?

  • The first RMD must be taken by April 1, 2025.
  • After the first year, RMDs are due every December 31.
  • If you delay your first withdrawal to April, you must withdraw two RMDs in 2025, potentially increasing your tax bill.

If you’re unsure about what assistance you qualify for, take a look here.

 

Who Needs to Take an RMD?

If you own or are a participant in any of these accounts:

Roth IRAs are not subject to RMDs.

 

What Retirees Should Do Now?

  • Check your eligibility: If you were born in 1951 (turning 73 in 2024), this applies to you.
  • Review your balances: Your financial institution can calculate your RMD or guide you.
  • Understand the tax impact: RMDs are taxable and reported as income on your tax return.
 

Exceptions for Some Still-Working Retirees

  • If your workplace plan allows, you may delay RMDs if you’re still employed.
  • Owners of 5% or more of a business cannot delay.
  • SEP and SIMPLE IRAs do not qualify for this delay.
 

Why It’s Important for Retirees?

  1. Provides an essential income stream during retirement
  2. Helps retirees plan for taxes and expenses
  3. Prevents costly penalties — failure to withdraw can trigger up to a 25% penalty for the missed amount

For detailed guidance, check IRS Publication 575 or consult your financial advisor to plan your withdrawals efficiently.

Previous article: How to Find a Doctor That Accepts Medicaid

-

Discover more helpful tips and insights at GetSeniorBenefits.net—where we empower you with the knowledge to live your best life every day.

Related Articles

Your Social Security Benefit this March May Be Bigger Than You Think: Here’s Why...

Many Americans rely on Social Security for financial support in retirement, but several factors can increase your benefits beyond what you might expect. Understanding these factors can he...

Navigating Medicare Advantage: What Seniors Need to Know...

As Medicare Advantage plans continue to gain popularity among seniors, understanding the dynamics between hospitals, insurers, and beneficiaries becomes increasingly crucial.  Here's a simplified breakdow...

The Retirement Savings Revolution: How Auto-Enrollment Plans Are Changing the Game...

The retirement landscape is shifting as companies adopt innovative new plans to help employees save for the future. Auto-enrollment 401(k)s are transforming how people plan for their ...

Surprise August Bonus: Extra Social Security Payment Headed Your Way...

This August, some Social Security recipients will receive an unexpected financial boost: an extra payment. This surprise is due to the Social Security Administration's (SSA) payment schedule and sp...

What Seniors Need to Know About Medicare Premium Increases for 2025...

For many seniors, Social Security checks represent a vital lifeline, helping them manage expenses during retirement. But in 2025, a significant portion of the expected Cost-Of-Living Adjustment (COLA) i...

Special Monthly Compensation (SMC) Rates for VA Disability in 2025: What Veterans Need to Know...

The Special Monthly Compensation (SMC) rates for VA disability in 2025 offer critical financial support to veterans, their families, and dependents facing unique challenges. T...

Get senior benefits assistance

Get personalized help to unlock your senior benefits—no hassle, just support.
Get Started