Understanding 2024 IRA Required Minimum Distributions (RMDs):

Required Minimum Distributions (RMDs) are the minimum amounts individuals must withdraw annually from their Traditional IRAs, SEP IRAs, and SIMPLE IRAs once they reach the required starting age. For 2024, under the SECURE Act 2.0, RMDs must begin by April 1 of the year following the year you turn 73. After the first RMD, all subsequent distributions must be taken by December 31 each year.

The RMD amount is determined by dividing the IRA balance as of December 31 of the prior year by a life expectancy factor from IRS tables. Failing to withdraw the full RMD amount may result in a penalty of 25% of the shortfall, which can be reduced to 10% if corrected promptly.

Note: Roth IRAs are exempt from RMDs during the account holder’s lifetime, offering additional flexibility in retirement planning.

For more details and tools for calculating your RMDs, visit the IRS Required Minimum Distributions page.

IRS:
Don’t panic. If you cannot pay the full amount of taxes you owe, you should still file your return by the deadline and pay as much as you can to avoid penalties and interest. You also should contact the IRS to discuss your payment options at 800-829-1040. 

Visit IRS.gov to learn more. 

MA:
You should contact MA DOR to discuss the best solutions for your situation.

9 a.m.–4 p.m., Monday through Friday

Visit Mass.gov to learn more.