1. Required minimum distributions (RMDs) on tax-deferred retirement accounts now start at age 73 for individuals born between 1951 and 1959. The Secure 2.0 Act eliminated RMDs on Roth 401(k) plans and Roth 403(b) plans during the original account holder’s lifetime.
2. RMDs must generally be completed by December 31, with a 25% excise tax imposed for failure to take the RMD before the deadline. Tax-deferred retirement accounts like traditional IRAs and 401(k) plans require withdrawals based on specific rules and regulations.
3. Roth 401(k) plans and 403(b) plans are no longer subject to RMD rules, as the Secure 2.0 Act eliminated required minimum distributions on these accounts. RMD amounts not withdrawn by the deadline are subject to a smaller excise tax penalty.
4. Understanding the rules around RMDs can be complex, especially with recent legislative changes. It’s important to know when RMDs must start, which accounts are exempt, and the consequences of missing the deadline. Make sure to stay informed and comply with RMD regulations to avoid penalties.

Read more at Nasdaq: 3 Required Minimum Distribution (RMD) Rule Changes Retirees Must Know Before 2026