Core Points - Traditional IRAs and 401(k) plans allow investment of pre-tax dollars, with tax liabilities deferred until withdrawals are made in retirement [1] - Required Minimum Distributions (RMDs) are mandatory withdrawals from tax-deferred retirement accounts, which must begin at a certain age [2] Summary by Sections RMD Changes - The Secure 2.0 Act increased the age for starting RMDs from 72 to 73 for individuals born on or after January 1, 1951 [4] - The age thresholds for RMDs are as follows: - Before July 1, 1949: 70 1/2 - July 1, 1949, to December 31, 1950: 72 - January 1, 1951, to December 31, 1959: 73 - After December 31, 1959: 75 [5] RMD Compliance - RMDs must be completed by December 31 each year, with the first RMD allowed to be delayed until April 1 of the following year [6] - Failure to withdraw the required amount incurs a penalty of 25% of the amount not withdrawn, although this penalty can be reduced [6]