RMDs in 2025: What Advisors Need to Know as Rules Keep Evolving

Few retirement rules have changed more often—or caused more confusion—than required minimum distributions (RMDs). As 2025 approaches, advisors face another year of evolving regulations that can trip up even seasoned professionals. Between shifting start ages, delayed guidance, and penalty relief rules, staying current isn’t just good compliance—it’s essential for client trust and accurate planning. 

The New RMD Landscape 

The SECURE Act 2.0 continues to reshape how and when retirees must take RMDs. The most notable change: the starting age. It rose from 72 to 73 in 2023 and will jump again to 75 in 2033. 

Individuals born in 1951 reached age 73 in 2024. That makes 2024 their first RMD year, and they have until April 1, 2025, to take that first withdrawal — but doing so means they’ll also have to take their 2025 RMD by December 31, 2025, creating two taxable RMDs in one calendar year. Those born in 1952 reach 73 in 2025, so 2025 becomes their first RMD year; they can delay that first payout until April 1, 2026. 

While the delay gives retirees more flexibility, it can also complicate planning. Advisors should model not just the timing of RMDs, but the impact on lifetime tax efficiency, Medicare premiums, and legacy goals. 

IRS Clarifications and 2025 Implementation 

In 2024, the IRS extended transitional relief for inherited IRA beneficiaries affected by the SECURE Act’s 10-year rule—relief that covers 2021–2024 missed annual withdrawals for many non-spouse beneficiaries. The IRS has signaled that this is temporary while it finalizes the 10-year rule, so advisors should assume clearer (and enforceable) expectations in 2025. 

Another key update: The penalty for missing an RMD, once a stiff 50%, was permanently reduced to 25%—and only 10% if corrected promptly. While that’s good news, it doesn’t eliminate the need for precision. Advisors should ensure custodians and clients are aligned on calculation methods and distribution tracking, especially across multiple accounts. 

Planning Opportunities Amid Constant Change 

While many clients dread RMDs as a tax burden, advisors can reframe the conversation. Roth conversions before RMD age, qualified charitable distributions (QCDs), and strategic account sequencing can turn RMD management into proactive tax planning. 

For younger retirees, the rising RMD age offers a window of opportunity—those “gap years” between retirement and required withdrawals can be ideal for income smoothing, conversions, or harvesting capital gains at lower rates. As RMD rules evolve, personalized planning becomes more valuable than ever. 

Closing Thoughts 

The message for 2025 is clear: RMDs aren’t static—they’re a moving target shaped by legislation and IRS interpretation. Advisors who stay ahead of these updates can help clients avoid costly mistakes and uncover meaningful tax efficiencies along the way. 

Takeaways 

• RMD start age is now 73 (and will rise to 75 in 2033), creating planning windows for some clients. 
• Inherited IRA rules remain in flux, and 2025 may bring enforcement once final rules are issued. 
• Penalty relief and new planning levers—like Roth conversions and QCDs—make proactive distribution strategies more powerful than ever.