It Happened to Sarah—And It Could Happen to You
Sarah turned 73 in March and assumed her first RMD wasn’t due until December 31. She filed her taxes in April—only to learn she’d missed the April 1 deadline for her *first* RMD (which applies only to the year you turn 73). The IRS penalty? 25% of the amount she should’ve withdrawn. No warning. No grace period. Just a steep bill. She wasn’t careless—she was misinformed. And she’s not alone: over 40% of retirees don’t know their exact RMD start date or how it differs between IRAs and 401(k)s.
Your Age Triggers the Clock—But Not How You Think
Under current SECURE 2.0 rules, RMDs begin at age 73 (if you turned 72 after Dec 31, 2022). Your *first* RMD must be taken by April 1 of the year *after* you turn 73—but every subsequent RMD is due by December 31. Important nuance: if you’re still working past 73 and don’t own 5%+ of your employer, you can delay 401(k) RMDs until retirement—but IRAs? Never. Roth IRAs have no RMDs during your lifetime, but Roth 401(k)s do.
Practical Tips
Set two calendar reminders *now*: one for April 1 of the year after your 73rd birthday (your first RMD), and another for December 31 each year after. Also, call your IRA custodian and 401(k) plan administrator this month—they’ll calculate your exact RMD amount for free and confirm your account type. Bonus tip: use IRS Uniform Lifetime Table (not Joint Life) unless your spouse is more than 10 years younger and is your sole beneficiary.
Final Thoughts
Mistakes are costly—but they’re avoidable. A single missed RMD triggers penalties that add up fast. RemindMeBot can send you a free, no-signup email reminder 60 days before your first RMD—and yearly thereafter. Just enter your birthdate once, and breathe easier.