RMD Age Explained: Key Timelines for Your Retirement Withdrawals

RMD Age Explained: Key Timelines for Your Retirement Withdrawals

Required Minimum Distributions (RMDs) refer to the mandatory withdrawals that the IRS requires you to take from your retirement accounts once you reach a certain age. This Required minimum distributions age ensures that tax-deferred savings are eventually taxed. For most individuals, the current Required minimum distributionsage is 72, though recent legislation may adjust this to 73 or even 75 for those born in 1960 or later.

 

 

RMD Age Table for 2024 and Beyond

 

Year Reached Age	Applicable RMD Age
2019 or Earlier	70½
2020-2022	72
2023-2032	73
2033 and Later	75

Changes to the Required Minimum Distributions Age

The Required minimum distributions age has recently changed due to the SECURE Act and SECURE 2.0. Previously, individuals had to start taking Required Minimum Distributions (RMDs) at age 70½. Under the new rules, the Required minimum distributions age is now 73 starting in 2024. By 2033, is expected to rise to 75 for those born in 1960 or later, giving retirees more time before mandatory withdrawals begin​.

 

RMDs and Working After Required Minimum Distributions Age

If you’re still working after reaching the Required minimum distributions age (currently 73), you may be able to delay RMDs from your employer-sponsored 401(k) until you retire, provided you don’t own more than 5% of the company. However, this exception does not apply to IRAs, where RMDs must be taken regardless of employment status​.

 

Impact of Delaying First RMD

You can delay your first Required Minimum Distribution (RMD) until April 1 of the year after you reach the Required minimum distributions age. However, delaying means you’ll have to take two RMDs in the same year: one for the year you turn 72 (or 73) and one for the current year. This could result in a higher taxable income, potentially pushing you into a higher tax bracket.

With Dimov CPA by your side, understanding and managing your RMDs, whether you’re nearing or have passed the Required minimum distributionsage, becomes much simpler and more manageable.

 

Frequently Asked Questions

 

• What is the RMD age for 2024?

The Required minimum distributionsage for 2024 is 73, raised from 72 under the SECURE 2.0 Act.

• Can I delay my first RMD?

Yes, you can delay your first RMD until April 1 of the year after you reach the Required minimum distributions age.

• What happens if I miss my RMD?

Missing your RMD results in a 50% penalty on the amount not withdrawn.