Cortburg Speaks Retirement

RMD Rules Explained: What You Must Know at Age 73 and Beyond

• Miguel Gonzalez, MBA, AIF®, CPFA®, CRC® • Season 2024 • Episode 243

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Confused about Required Minimum Distributions (RMDs)? Learn when they start, how they work, and how to avoid costly tax mistakes in this week’s episode with Miguel Gonzalez.

Cortburg Retirement Advisors is a boutique financial planning firm committed to helping you grow, protect, and preserve your assets from your first job to retirement. We specialize in wealth management, estate and tax planning, group retirement, employee benefits, insurance, and retirement planning to navigate any economic climate.

Miguel Gonzalez, a Retirement Specialist with 20+ years of experience, offers expertise in retirement income planning, investment management, and retirement plan design. With an MBA from Columbia Business School, and professional experience with JP Morgan Chase, Merrill Lynch, and more, Miguel is a trusted advisor for his clients.


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Welcome to Cortburg Speaks Retirement Podcast
with Miguel Gonzalez, MBA, AIF®, CPFA®, CRC®

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Welcome to Cortburg Speaks Retirement

An audio podcast about investing in the stock market, financial planning, money management and retirement planning.  Each Wednesday, we help investors at all stages of life learn how to potentially grow and preserve their money from first job through retirement.

Now here is your host, Miguel Gonzalez.

Good morning and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast.   

On this week’s audio podcast, we’re talking about a critical—and often confusing—part of retirement:


 Required Minimum Distributions, or RMDs.

If you have a tax-deferred retirement account, this is something you can’t afford to ignore. Let’s break it down.

What Are RMDs?

RMDs are the minimum amounts you must withdraw each year from most tax-deferred retirement accounts—like Traditional IRAs, 401(k)s, 403(b)s, and other workplace plans—once you reach a certain age.

Why? Because the government wants its share. You received tax breaks when you contributed, and now it’s time to pay income tax on those savings.

When Do RMDs Start?

As of 2025, RMDs generally begin at age 73. If you were born in 1960 or later, the starting age increases to 75.

You must take your first RMD by April 1 of the year after you reach the required age. After that, you need to take one every year by December 31.

Missing a deadline can be costly. The IRS imposes a penalty of 25% of the amount you failed to withdraw—though that can drop to 10% if corrected quickly.

Which Accounts Are Affected?

RMDs apply to:

  • Traditional IRAs
  • SEP IRAs
  • SIMPLE IRAs
  • 401(k), 403(b), and 457(b) plans

They do not apply to:

  • Roth IRAs (during your lifetime)
  • Roth 401(k)s (for distributions after 2024, they’ll no longer require RMDs)

How Are RMDs Calculated?

Your RMD is based on your account balance at the end of the previous year, divided by a life expectancy factor from IRS tables.

This means your RMD amount changes each year—depending on your age and your account value. If you have multiple IRAs, you can total the RMDs and take the withdrawal from one or more accounts. But for 401(k)s, you must calculate and withdraw separately from each one.

Planning Around RMDs

RMDs can create unexpected tax consequences—especially if they bump you into a higher tax bracket or affect Medicare premiums.

Here are a few strategies to consider:

  • Roth Conversions before RMD age to reduce future RMDs
  • Qualified Charitable Distributions (QCDs) if you're 70½ or older, allowing you to donate RMDs tax-free
  • Adjusting your withdrawal strategy to smooth out taxable income

A financial professional can help you determine the most efficient approach.

In Closing

Understanding the rules of Required Minimum Distributions can help you stay compliant, manage taxes, and use your retirement savings more effectively.

Make sure to visit our website, www.CortburgRetirement.com. Our site is filled with educational videos, eBooks, publications, and financial calculators designed to help you learn more about your finances.  As you search our site, send us a note regarding any questions you may have about any particular investment concepts or products. We will get back to you quickly with a thoughtful answer.

This is Miguel Gonzalez, Certified Retirement Counselor (CRC) and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational podcast.  

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Miguel Gonzalez, MBA, AIF®, CPFA®, PPC®, CRC®

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