Deadline for Required Minimum Distribution (RMD) Is Near – Essential Steps for Retirees Before December 31
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 07 2025
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Source: Yahoo Finance
Required Minimum Distributions (RMDs): RMDs begin at age 73 and are calculated based on age and retirement account balance from the previous year, with penalties for missed withdrawals reaching up to 25%.
Deadline for Withdrawals: The deadline for completing RMDs is approaching, with first-time RMDs having an extended deadline until April 1, 2026.
Calculating RMDs: To determine the RMD amount, divide the retirement account balance by the life expectancy factor (LEF) provided by the IRS, which varies based on age and marital status.
Penalties and Corrections: If an RMD is missed, a penalty of 25% applies, but it can be reduced to 10% if corrected within two years; IRS Form 5329 must be submitted to address missed distributions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
