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Unlock Financial Freedom: A Guide to Required Minimum Distributions at 73

As the years go by, individuals approaching or entering their golden years need to be well-versed in financial matters, particularly those related to retirement plans and individual retirement arrangements (IRAs). The Internal Revenue Service (IRS) has recently reiterated the importance of adhering to required minimum distribution (RMD) rules to avoid potential penalties. This article will delve into the fundamentals of RMDs and provide key considerations for 2023.

Demystifying Required Minimum Distributions (RMDs)

Upon reaching the mandatory beginning age, it becomes essential to take annual required minimum distribution (RMDs) from your qualified retirement plan or IRA. These rules apply to a variety of accounts, including traditional IRAs, SEPs, SARSEPs, SIMPLE IRAs, and qualified plans such as 401(k), 403(b), 457(b) plans, as well as profit-sharing, defined contribution, and defined benefit plans.

RMDs serve a crucial purpose in ensuring that retirement funds are gradually distributed over time, preventing individuals from amassing excessive tax-deferred savings. The IRS mandates that RMDs commence at the age of 72 (73 for individuals reaching age 72 after December 31, 2022).

Key Points to Remember for 2023

Individuals turning 73 in 2023, the mandatory beginning age for RMDs, have the option to postpone their 2023 RMD until the first quarter of 2024. However, delaying the 2023 distribution until 2023 could result in having to take two distributions in one year—2023 and 2024.

For those who attained the mandatory beginning age before 2023, it is imperative to take their RMD before January 1, 2024. Failure to comply with this deadline may lead to penalties amounting to as much as 25% of the RMD.

Seeking Expert Guidance

Navigating the complexities of RMDs can be challenging, and seeking professional assistance is often advisable. Financial advisors can provide personalized guidance on RMD calculations, distribution options, and potential tax implications.

It is important to note that RMDs cannot be rolled over to another IRA or retirement plan. Additionally, for inherited IRAs, the mandatory beginning age may be at a younger age, and financial advisors can assist in computing the RMD amount, determining the starting date, and providing guidance on the distribution period.

Planning for a Secure Retirement

Effective retirement planning involves careful consideration of RMDs and adherence to IRS regulations. By understanding the basics of RMDs and seeking expert guidance when needed, individuals can ensure a smooth transition into retirement and maximize their financial well-being during their golden years.


Required minimum distributions (RMDs) are essential for optimizing retirement funds and ensuring a steady stream of income during the post-employment years. As you enter retirement, understanding RMD rules and seeking expert guidance are paramount to achieving financial stability and fulfillment during this significant life stage.

RMDs mandate that individuals withdraw a specified amount from their retirement accounts each year, starting at a certain age. This helps spread out tax liabilities, provides a consistent income stream, and balances retirement portfolios.

To navigate the complexities of RMDs and ensure a smooth retirement journey, our experienced financial advisors are here to assist you. We can help you calculate RMDs, determine distribution options, and manage tax implications, ensuring that you meet your RMD obligations while maximizing your retirement savings.

Please feel free to contact us to discuss your specific RMD situation and receive personalized guidance tailored to your unique needs.

JS Morlu LLC is a top-tier accounting firm based in Woodbridge, Virginia, with a team of highly experienced and qualified CPAs and business advisors. We are dedicated to providing comprehensive accounting, tax, and business advisory services to clients throughout the Washington, D.C. Metro Area and the surrounding regions. With over a decade of experience, we have cultivated a deep understanding of our clients’ needs and aspirations. We recognize that our clients seek more than just value-added accounting services; they seek a trusted partner who can guide them towards achieving their business goals and personal financial well-being.
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