The Internal Revenue Service (IRS) has issued a reminder to retirees who turned 72 last year that, in most cases, they face a deadline on April 1, 2023, to take their first payment from their workplace retirements plans or face penalties.
Americans can’t keep their retirement funds in their accounts indefinitely. When they turn 72, they generally have to start taking withdrawals from their plans, such as from traditional individual retirement accounts (IRAs), 401(k)s, and other workplace retirement plans.
These withdrawals, called required minimum distributions (RMDs), are normally made by the end of the year. But a special rule that applies to people who turned 72 during 2022 lets such individuals wait until April 1, 2023, to take their first required withdrawal….