Age 73 IRA withdrawal checks in 4 sources

Required IRA withdrawals generally start at age 73 for a traditional IRA, SEP IRA, or SIMPLE IRA.

• Verify the client has reached age 73, the starting age for required withdrawals from an IRA, SIMPLE IRA, SEP IRA, or retirement plan account, according to Internal Revenue Service.
• Mark the first withdrawal deadline as April 1 of the year following the calendar year in which the client reaches age 73, according to Internal Revenue Service.
• Note that for each year after the required beginning date, the RMD must be withdrawn by December 31, according to Internal Revenue Service.
• Flag that the amount not withdrawn may be subject to an excise tax of 25%, or 10% if the RMD is timely corrected within two years, according to Internal Revenue Service.
• Record the client's birth date and the applicable deadline before the return is finished.

Before you finalize a return for a client holding a traditional IRA, SEP IRA, or SIMPLE IRA, verify if the account holder has reached the starting age for required minimum distributions. The Internal Revenue Service states that you generally have to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account when you reach age 73, according to Internal Revenue Service. The IRS notes that owners of traditional IRA, and SEP and SIMPLE IRA accounts must begin taking RMDs once the account holder is age 73, even if they're retired, according to Internal Revenue Service.

For clients in a specific birth range, the rule is tied to a specific age threshold. TurboTax explains that in essence, the rules require you to begin making withdrawals from your traditional IRA once you turn age 73 for individuals born between 1951 and 1959, according to TurboTax. When reviewing a client file, check the birth year against this range. Use the Accounting Client Intake Checklist for a Clear Handoff when the file first arrives. If the client was born between 1951 and 1959, the age 73 threshold is the trigger point for the first required distribution. Focus your review on the 1951-1959 cohort for the age 73 rule.

The Internal Revenue Service page titled "Retirement topics - Required minimum distributions (RMDs)" states that for the first year following the year you reach age 73, you will generally have two required distribution dates. These dates consist of a withdrawal on April 1 of the year following the year you turn 73 and an additional withdrawal by December 31. The same IRS page explains that you can make your first withdrawal by December 31 of the year you turn 73 instead of waiting until April 1 of the following year. This choice allows the client to take the initial distribution in the calendar year they reach the age threshold rather than deferring it to the next calendar year.

Another IRS source, "Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)," confirms that you must begin receiving required minimum distributions by April 1 of the year following the year you reach age 73. This publication aligns with the topic page by identifying April 1 as the standard starting point for the first required distribution in the year after the client turns 73.

When reviewing a client's return, check whether the client reached age 73 in the current tax year. If they did, the first required distribution is due by April 1 of the following year, unless the client chooses to take it by December 31 of the current year. If the client chooses the December 31 date, the first distribution occurs in the year they turn 73, and the next required withdrawal is due by December 31 of the following year. If the client waits until April 1, the first distribution is due on that date, and the second distribution is due by December 31 of the same year.

Once the first required minimum distribution is taken, the deadline for every subsequent year is fixed. According to Internal Revenue Service, for each year after the required beginning date, the account owner must withdraw the RMD by December 31. Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs) confirms this timeline, stating that the required minimum distribution for any year after the year the owner reaches age 73 must be made by December 31 of that later year. This creates a consistent annual checkpoint for the reviewer.

The consequence of missing this deadline is a specific financial penalty. According to Internal Revenue Service, if an account owner fails to withdraw the full amount of the RMD by the due date, the amount not withdrawn may be subject to an excise tax of 25%. The same source notes a reduction in this penalty if the error is caught quickly. It states that the tax is 10% if the RMD is timely corrected within two years.

Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs) also clarifies the start of this obligation. According to Internal Revenue Service, even though the owner can receive distributions after reaching age 59½, distributions aren't required until the owner reaches age 73. This confirms that the December 31 deadline for later years only becomes active once the age 73 threshold is crossed. Before that age, the owner has the flexibility to delay withdrawals without triggering the excise tax described in the FAQ.

The table below lists the rule, number, and form or deadline each publisher names in one row for each publisher.

According to Internal Revenue Service, the starting age is 73 and the first deadline is April 1 of the following year. According to TurboTax, the rule applies to individuals born between 1951 and 1959. According to U.S. Government Publishing Office, the applicable age is 73 for those attaining age 72 after December 31, 2022, and age 73 before January 1, 2033. According to Drake Software, the taxable amount from the 1099-R line 2 will carry to the appropriate line of Form 5329 (if required), then Form 1040. For a corrected information return, see Client 1099 corrections with 4 resubmission checks.

For defined contribution plan participants or IRA owners who die after December 31, 2019, the entire balance of the deceased participant's account must be distributed within ten years, according to Internal Revenue Service. The source notes a delayed effective date for certain collectively bargained plans in this context. This rule applies to the account balance of the deceased individual. When reviewing a return involving a deceased client, confirm whether the death occurred after the specified date to determine if this ten-year distribution window applies. The deadline is tied to the year of death and the subsequent ten-year period. The distribution must be completed within that timeframe.

Picture a file review in 2025. The reviewer finds 10 still unwithdrawn after the later-year deadline. That unwithdrawn amount may be subject to an excise tax of 25%. If the shortfall is timely corrected within 2 years, the tax is 10%. The reviewer writes down the unwithdrawn amount, the 25% figure, and whether the 2-year window is still open. The note also records whether the first withdrawal used the April 1 delay or was taken in the year the starting age was reached. These amounts are illustrative and stand in for a real account balance. The reviewer then compares the note with Form 1040 only after the shortfall line is complete. The round figures above are only for practice on this page.

Today, record the birth date and the deadline that applies before the return is finished. Then mark whether age 73 has been reached so the April 1 and December 31 dates are not mixed up. Do that on the open file before you move to the next return. Use this single line to record the specific client details before the return is finished.

Write the client's birth date in the first cell. Mark whether the client has reached age 73 in the second cell. Record which of the two dates in the IRS topic page applies to this year in the third cell. Before you sign, walk through Preparer duties before signing a return: 4 checks.

At what age do the IRS pages say withdrawals must start?

You generally have to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account when you reach age 73, according to Internal Revenue Service.

When is the first withdrawal due?

The first withdrawal is due by April 1 of the year following the calendar year in which you reach age 73, according to Internal Revenue Service.

When are later withdrawals due?

For each year after your required beginning date, you must withdraw your RMD by December 31, according to Internal Revenue Service.

What excise tax applies if the full amount is not withdrawn?

If an account owner fails to withdraw the full amount of the RMD by the due date, the amount not withdrawn may be subject to an excise tax of 25%, 10% if the RMD is timely corrected within two years, according to Internal Revenue Service.

Which form is named when a 1099-R amount carries forward?

The taxable amount from the 1099-R line 2 will carry to the appropriate line of Form 5329 (if required), then Form 1040, according to Drake Software.