For most of retirement, a traditional IRA or 401(k) can sit untouched, growing without a tax bill. That freedom does not last. The government eventually forces withdrawals so it can finally collect the taxes it deferred for decades, and the age at which those forced withdrawals begin recently moved. Knowing the current starting age, and the one coming in 2033, matters because missing the deadline carries a stiff penalty.
The starting age moved to 73, then 75
Required minimum distributions are the mandatory annual withdrawals a person must take from most tax-deferred retirement accounts. Under the law, the age to begin taking them is 73 for people who reach that age now. A later provision raises the starting age to 75 beginning in 2033. The shift was enacted through the retirement law known as SECURE 2.0, which pushed the age back in two steps.
The change gives retirees a few more years of tax-deferred growth before the withdrawals, and the taxes on them, are forced. Someone turning 73 today falls under the current rule; someone who will not reach 73 until 2033 or later will have until 75. The practical effect is a longer runway during which a retiree controls the timing of withdrawals rather than the calendar dictating it.
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Which accounts the rule covers
The requirement applies to traditional IRAs and to employer plans such as 401(k) and 403(b) accounts, along with SEP and SIMPLE IRAs. These are the accounts that were funded with pre-tax dollars, so the government has never collected income tax on the contributions or the growth. The annual withdrawal amount is calculated from the account balance at the end of the prior year and a life-expectancy factor published by the Internal Revenue Service, so the required amount rises as a person ages.
One account type is exempt during the owner’s lifetime. A Roth IRA does not force withdrawals while the original owner is alive, because those contributions were made with money already taxed. That difference is one reason some retirees convert traditional balances to Roth accounts before the required-withdrawal age, trading a tax bill now for the freedom to leave the money untouched later.
The first withdrawal has its own deadline
The timing of the very first required withdrawal is a common trap. A retiree can delay the first one until April 1 of the year after they reach the starting age, but doing so means taking two withdrawals in that second year, the delayed first one plus the regular one due by December 31. Stacking two taxable withdrawals into a single year can push a retiree into a higher tax bracket or raise other income-based costs, so the delay is not always the bargain it appears to be.
After the first year, the deadline settles into a steady rhythm: each year’s required withdrawal must come out by December 31. A person with multiple retirement accounts has to calculate the required amount for each, though the rules on which accounts can be combined for a single withdrawal differ between IRAs and employer plans. Getting that arithmetic right is what keeps a retiree clear of the penalty.
Why missing the deadline is costly
The penalty for failing to take a required withdrawal used to be severe, and it remains significant. Under current law, missing a required minimum distribution triggers an excise tax on the amount that should have been withdrawn, though SECURE 2.0 reduced that penalty and allows it to shrink further if the mistake is corrected promptly. The Internal Revenue Service can waive the penalty for a reasonable-cause error that is fixed quickly, but the safer course is never to miss the date.
The withdrawals also carry ordinary income tax, since the money was never taxed on the way in. That reality argues for planning the timing of withdrawals across a retirement rather than being caught flat-footed at 73. A retiree who begins drawing down or converting traditional balances earlier, in lower-income years, can smooth the tax hit that the required withdrawals eventually force. The rule is not optional, but the pace of the surrounding strategy is, and that is where the money is won or lost.
With the starting age now at 73 and set to reach 75 in 2033, retirees have more time than earlier generations to plan those moves. The extra years are only an advantage to someone who uses them deliberately rather than waiting for the government to set the clock.
This article was researched and drafted with the assistance of AI and reviewed by The Financial Wire editorial team.
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Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
