Retirement savers spent years watching Congress push back the age at which the government forces withdrawals from tax-deferred accounts, and the schedule is not finished moving. Most owners of a traditional IRA, 401(k), or similar workplace plan must now begin required minimum distributions at age 73, a threshold raised twice in recent years and set to rise again to age 75 for those turning that age starting in 2033.
The Current Trigger: Age 73
Account owners generally must start taking required minimum distributions, or RMDs, from a traditional IRA, SEP IRA, SIMPLE IRA, or workplace retirement plan once they reach age 73, according to the IRS’s required minimum distributions FAQ page. That threshold applies to anyone reaching age 73 between 2023 and 2032, the current window set by the SECURE 2.0 Act after two separate increases moved the trigger age up from 70½.
Workers still employed at a company sponsoring their 401(k) or similar plan, and who are not a 5-percent owner of that business, can often delay their RMDs from that specific plan until the year they actually retire, even past age 73. That workplace exception does not apply to a traditional IRA, which requires withdrawals at 73 regardless of employment status.
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The Deadline for a First Withdrawal
The first RMD does not have to be taken in the calendar year an owner turns 73. Federal rules allow that first distribution to be delayed until April 1 of the following year, per the IRS’s retirement topics page on required minimum distributions. Every RMD after that first one is due by December 31 of each year, with no further grace period.
Why the Trigger Age Rises Again in 2033
The SECURE 2.0 Act, signed at the end of 2022, built a second scheduled increase into the law: the RMD starting age moves from 73 to 75 for individuals who reach that later age beginning January 1, 2033. Unlike a proposal still working through Congress, this step-up is already written into current statute and IRS guidance as a fixed future date, not a pending change subject to a future vote. Savers currently in their 50s and early 60s are the group most likely to see the higher age apply directly to their own retirement timeline.
Missing an RMD Carries a Real Penalty
The consequence for skipping a required withdrawal, or taking less than required, is an excise tax on the shortfall: 25 percent of the amount that should have been withdrawn, reduced to 10 percent if the account owner corrects the mistake within two years. That penalty applies on top of the ordinary income tax owed once the distribution is eventually taken, making a missed or undersized RMD one of the more expensive retirement-account errors a saver can make in a given tax year.
This article was produced with AI assistance 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.
