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Retirees’ Year-End Must‑Do List: Take RMDs, Rebalance, Plan Next Year’s Cash Flow

Missing the Dec. 31 RMD cutoff can trigger costly penalties.

Overview

  • Those born before 1960 must start RMDs at age 73, with an April 1 first‑year deferral option that results in two withdrawals in the same calendar year.
  • Roth IRAs and Roth 401(k)s do not require RMDs, unlike traditional IRAs and 401(k)s.
  • Qualified charitable distributions can send money directly from a retirement account to a registered charity to potentially eliminate taxes on that RMD amount.
  • Retirees are advised to review portfolios for sufficient income and to trim outsized positions, with a single stock at roughly 15% flagged as a risky concentration.
  • The guidance urges initiating any withdrawals and charitable transfers now to avoid processing snags and penalty exposure before 2025 ends.