In just over a week, retirees making their first mandatory retirement plan withdrawal will be penalized if they do not make the withdrawal by the end of April 1.
Payments from retirement plans are usually made by the end of the year, though retirees who turned 72 in 2022 are covered by a rule allowing any of them involved in workplace retirement plans to wait until as late as April 1 to take their first required minimum distribution payment or RMD. After this first payment, future RMD payments must be made by Dec. 31 of every year following, according to the IRS.
The retirement plans that this deadline applies to include traditional, SEP, and SIMPLE IRAs while the original owner is alive, as well as those who own 401, 403, and 457 plans. For the 2022 RMD, the amount can be found on the 2021 Form 5498, which was issued to owners of retirement plans in 2022.Recipients who are receiving this RMD by April 1 should also know that it is taxable for the 2023 tax year and needs to be reported on one's 2024 tax return.
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