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If you have a tax-favored retirement account, including a traditional IRA, you must comply with the required minimum distribution (RMD) rules after reaching a certain age. Currently, the starting age for RMDs is 73 for account owners who turned 72 beginning in 2023. So, if you turned 72 in 2023, you’ll turn 73 in 2024 and your initial RMD will be for calendar 2024. You must take that initial RMD by April 1, 2025, or face a penalty. The tax-smart strategy is to take your first RMD (for 2024) before the end of 2024 instead of in 2025. Then, take your second RMD (for 2025) by Dec. 31, 2025. That way, you’ll avoid having to take two RMDs in 2025 with the resulting double tax in that year. https://bit.ly/4cMCzEb

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