Understanding IRS RMD Rules for 2025

Required Minimum Distributions (RMDs) are the minimum amounts that retirement account holders must withdraw each year once they reach a certain age. For 2025, the rules reflect recent changes under the SECURE Act and SECURE 2.0 Act. Here’s what you need to know in plain English:

Who Must Take RMDs in 2025?

Traditional IRA holders who are age 73 or older.
Owners of SEP IRAs and SIMPLE IRAs (after reaching age 73).
Inherited IRA beneficiaries, depending on their relationship to the original account owner and the rules under the SECURE Act.
Employer-sponsored retirement plan holders (like 401(k)s), if no longer working for the plan sponsor.

Important exception: Roth IRAs do not require RMDs during the lifetime of the original account owner.

When Do You Have to Take It?

Your first RMD is due by April 1 of the year after you turn 73.
After that, RMDs must be taken by December 31 each year.
If you delay your first RMD until April 1, you’ll need to take two RMDs in that same year (the delayed one plus the current one).

How Much Do You Have to Take?

The RMD amount is based on your account balance as of December 31 of the previous year, divided by your life expectancy factor from the IRS Uniform Lifetime Table.
Example: If your December 31, 2024 account balance is $265,000 and your factor at age 73 is 26.5, your 2025 RMD would be about $10,000.
If you have multiple IRAs, you calculate each separately but can withdraw the total from one or multiple accounts.
Employer-sponsored plans (401(k), 403(b), etc.) require RMDs to be taken from each plan separately.

Penalties for Missing an RMD

The IRS penalty is 25% of the amount not withdrawn.
If corrected within two years and reasonable cause is shown, the penalty may be reduced to 10%.
Missing the deadline does not allow you to “double up” the following year — the penalty still applies.

Special Considerations for 2025

The SECURE 2.0 Act raised the starting age for RMDs to 73.
In 2033, the age will increase again to 75.
Beneficiaries of inherited IRAs may be subject to the 10-year rule (all assets must be withdrawn within 10 years), with RMDs required in certain cases.

Additional Resources

Bottom line: For 2025, RMDs apply to most retirement accounts starting at age 73, with annual withdrawals due by December 31. The IRS rules are clear, but the details — like how much to take and when — depend on your account type and circumstances.