Understanding when traditional individual retirement annuity distributions must start by a specific date is critical for avoiding costly IRS penalties. Many retirement savers are surprised to learn that the IRS does not allow you to keep funds in a traditional IRA indefinitely.
According to the IRS's required minimum distribution (RMD) rules, you generally must begin taking withdrawals once you reach a certain age, and failing to do so can trigger one of the steepest penalties in the tax code.
The problem is that the rules have changed twice in recent years, leaving many account holders confused about which deadline applies to them. This article breaks down the exact deadlines, the age thresholds, penalty exposure, calculation methods, and practical steps to stay compliant.
The Core Deadline: April 1 of the Year After You Turn 73
The most important rule to understand is that traditional individual retirement annuity distributions must start by April 1 of the calendar year following the year you reach your required beginning date (RBD). For most people, that age is now 73.
The SECURE Act 2.0, signed into law in December 2022, raised the RMD age from 72 to 73 for individuals born between 1951 and 1959. For those born in 1960 or later, the age rises again to 75.
This staggered implementation has created confusion, but the structure remains the same: your first distribution deadline is April 1 of the year after you hit your applicable age.
Consider a saver born in 1952. They turn 73 in 2025, which means their first traditional individual retirement annuity distributions must start by April 1, 2026. If they wait until that date, they will still need to take a second distribution by December 31, 2026, covering the 2026 tax year.
How to apply this: Check your birth year against the IRS age table immediately to confirm whether your RBD age is 72, 73, or 75.
The IRS Penalty for Missing the Deadline
Failing to take your RMD on time is expensive. The IRS previously charged a 50% excise tax on the amount not withdrawn. Under SECURE 2.0, that penalty dropped to 25%, and it can fall to 10% if you correct the error promptly by taking the missed distribution and filing Form 5329.
The IRS explains in Publication 590-B: "If you do not take any distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required." While the rate has since been reduced by legislation, the principle remains: the IRS treats missed RMDs as a serious compliance failure.
A common scenario involves someone with multiple traditional IRAs. You must calculate the RMD for each account separately, but you can aggregate the total and withdraw it from just one account if you prefer. Missing this nuance causes some people to under-withdraw.
Remember that traditional individual retirement annuity distributions must start by the applicable deadline regardless of how many accounts you hold, so consolidate your tracking to stay compliant.
How to apply this: Set a calendar reminder for November 1 each year to review your RMD status, giving you time to correct any shortfall before December 31.
How Your First Distribution Deadline Differs from Subsequent Years
Your first traditional individual retirement annuity distributions must start by April 1 after your RBD year, but every subsequent distribution must be taken by December 31 of that same year. This creates a potential double-distribution situation in your first year if you delay.
This matters because two distributions in one tax year can push you into a higher tax bracket or increase your Medicare premiums. Medicare Part B and Part D premiums are income-based, and a larger adjusted gross income from a double RMD can raise your IRMAA surcharge two years later.
Understanding that traditional individual retirement annuity distributions must start by April 1 only for the first year helps you plan around this trap.
The table below compares the first-year and subsequent-year rules:
| Aspect | First Distribution | Subsequent Distributions |
|---|---|---|
| Deadline | April 1 after RBD year | December 31 each year |
| Tax year credited | Prior calendar year | Current calendar year |
| Double distribution risk | Yes, if delayed to April | No, one per year |
| Penalty exposure | 10%–25% excise tax | 10%–25% excise tax |
| Best practice | Take by December 31 of RBD year | Automate withdrawals |
How to apply this: If you turn 73 in 2025, strongly consider taking your first RMD by December 31, 2025, rather than waiting for the April 1, 2026 grace date, to avoid stacking income into one year.
Calculating Your RMD Amount
Your RMD is calculated by dividing your traditional IRA balance as of December 31 of the prior year by a life expectancy factor from the IRS Uniform Lifetime Table. The IRS updates these tables periodically; the current tables took effect in 2022 and generally reflect longer life expectancies, which means smaller required distributions than under the old tables.
To calculate correctly, you need the exact fair market value of your IRA at the close of the prior calendar year. Most custodians, including Fidelity and Charles Schwab, provide this figure on your year-end statement and often calculate your RMD for you automatically.
Keep in mind that traditional individual retirement annuity distributions must start by the deadline even if your custodian does not send you a reminder, so proactive verification is essential.
A common error involves using the wrong table. If your spouse is more than 10 years younger than you and is your sole beneficiary, you use the Joint Life and Last Survivor Expectancy Table, which produces a lower RMD. Otherwise, you use the Uniform Lifetime Table.
How to apply this: Request your year-end IRA balance from your custodian in January, then use the IRS's online RMD worksheet or your custodian's calculator to verify the amount before withdrawing.
Inherited IRAs and Special Rules
If you inherit a traditional IRA, different deadlines apply. Traditional individual retirement annuity distributions must start by December 31 of the year following the original owner's death for most non-spouse beneficiaries, assuming the 10-year rule applies. Under the 10-year rule, you can delay distributions until year 10, but then you must empty the entire account.
Spouse beneficiaries have more flexibility. A surviving spouse can treat the inherited IRA as their own, which resets the RMD clock to their own age-based schedule. This is often the best option for younger spouses who want to delay distributions.
In that case, traditional individual retirement annuity distributions must start by the spouse's own RBD age, not the original owner's schedule.
The SECURE Act eliminated the stretch IRA for most non-spouse beneficiaries, replacing it with the 10-year rule. This means many heirs now face accelerated tax liability, and planning the timing of distributions within that window is essential to avoid bracket spikes.
How to apply this: If you inherited an IRA after 2019, confirm with the custodian whether you are an eligible designated beneficiary, because that status changes your distribution deadline significantly.
Frequently Asked Questions About traditional individual retirement annuity distributions must start by
What happens if I inherit a traditional IRA from someone who was already taking RMDs?
You must take the deceased owner's RMD for the year of death if they had not already done so. After that, traditional individual retirement annuity distributions must start by the deadline that applies to your beneficiary category.
If you are a non-spouse under the 10-year rule, you can wait until year 10 to take distributions, but the account must be fully emptied by December 31 of that year.
Can I withdraw more than the required minimum?
Yes, and in some cases doing so is smart tax planning. If you expect to be in a higher tax bracket in future years, taking larger distributions now can smooth your lifetime tax burden.
Keep in mind that traditional individual retirement annuity distributions must start by the required deadline, but there is no upper limit on how much you can withdraw in any year.
Does the April 1 grace period apply to inherited IRAs?
No. The April 1 grace period applies only to the account owner's first RMD. Beneficiaries do not get this extension. For an inherited IRA, traditional individual retirement annuity distributions must start by the specific deadline tied to your beneficiary classification, which is usually December 31 of a given year, not April 1 of the following year.
What if I have a traditional IRA annuity contract specifically?
Annuity contracts held inside a traditional IRA follow the same RMD rules as other IRA assets. The insurance company typically calculates the required amount using your contract's account value. However, traditional individual retirement annuity distributions must start by the same April 1 or December 31 deadlines, so coordinate with the insurer to ensure timely payment.
Can I avoid RMDs by converting to a Roth IRA?
Yes, Roth IRAs have no RMDs during the owner's lifetime. If you convert your traditional IRA to a Roth before your RBD, you avoid the requirement that traditional individual retirement annuity distributions must start by age 73 or 75. However, conversions are taxable in the year made, so spread conversions over several years to manage the tax impact.
Conclusion
Getting your RMD deadline right protects you from penalties that can erase years of retirement savings growth.
- Traditional individual retirement annuity distributions must start by April 1 of the year after you reach age 73 (or 75 if born in 1960 or later).
- The penalty for missing an RMD is 25% of the shortfall, reducible to 10% with prompt correction.
- Subsequent distributions are due December 31 each year, and taking your first RMD in the year you reach your RBD age avoids double-income stacking.
- Inherited IRAs follow different, often faster schedules, so confirm your beneficiary category with your custodian.
- Traditional individual retirement annuity distributions must start by the applicable deadline whether you hold one IRA or several, so review all accounts annually.
Your next step is straightforward: log into your IRA account today, confirm your birth year's RMD age, and schedule your first distribution well before the deadline. If you are unsure, contact a tax professional or use the IRS RMD page for authoritative guidance.
