The Required Minimum Distribution (RMD) is the mandatory amount that must be withdrawn from most retirement accounts each year. If you turned 73 in 2024 or earlier, understanding these rules and accurately reporting the income on your 2025 tax return is critical to avoiding IRS penalties.
RMD Rules and Deadlines for Tax Year 2025
Generally, RMD requirements apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, and 403(b) plans. RMDs are not required from Roth IRAs during the original owner’s lifetime.
If you were born after 1950, you typically start taking RMDs for the year you turn age 73.
For the 2025 filing season, two key deadlines may apply, especially if you turned 73 in 2024:
- First RMD (2024 tax year): If you reached age 73 in 2024 and delayed your first distribution, you must take it by April 1, 2025.
- Second RMD (2025 tax year): Your second RMD must be taken by December 31, 2025. Taking the first distribution in 2025 means you report two RMD incomes on your 2025 return.
Failing to take a sufficient distribution can result in a 25% excise tax on the amount not withdrawn, though this penalty may be reduced to 10% if corrected within two years.
Entering Your RMD Income (Form 1099-R)
All distributions received from retirement accounts are reported to you by your plan administrator or custodian on Form 1099-R and your RMD amount is found in box 12b of Form 5498, IRA Contribution Information.
Learn how to easily report your RMD on your tax return with our TurboTax video tutorial, "How to enter a Required Minimum Distribution."
Upcoming RMD Tax Law Changes
Congress continues to modify retirement rules under the SECURE Act 2.0. While the RMD age is currently 73, it is scheduled to increase again to age 75 in 2033.
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