If you’ve executed a solid retirement plan, it could be that you have accounts that contain more money than you need to have on hand on any given day. While that’s a good problem to have, you also need to stay alert to regulations to make sure you aren’t being penalized due to missing an obligation.

Many accounts, such as traditional IRAs, 401(k)s, and other qualified retirement plans, have required minimum distributions once you reach a certain age. These withdrawals are mandatory and are designed to ensure that you start using your retirement savings during your lifetime.

For 2025, the age at which you must begin taking RMDs remains at 73, following the changes introduced by the SECURE Act 2.0. This means that if you turn 73 in 2025, you will need to take your first RMD by April 1, 2026. Subsequent RMDs must be taken by December 31 of each year.

If you do not withdraw the required amount, you may be subject to a penalty of 25% of the amount that was not withdrawn. RMDs are adjusted annually and are calculated based on account balances from December 31 of the previous year, so it’s important to stay informed about what exactly you must withdraw.

Having an experienced professional helping guide you can help your bottom line. Call us at 678-539-9518 and find out how to become savvy and informed when planning your retirement.

https://money.usnews.com/money/retirement/401ks/articles/new-rmd-rules

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