Required Minimum Distribution Archives - Sycamore Financial Group

The Low Down on Retirement Accounts 2025

Hello from Sycamore,

If you are 73 and haven’t taken your Required Minimum Distribution (RMD) for the 2024 tax year, you will likely need to by April 1, 2025.

What is an RMD?

An RMD is the minimum distribution you must withdraw from your retirement account each year.

When do I have to begin taking RMDs?

You must begin taking your RMDs by April 1^st of the year following the calendar year in which you reach age 73. What does this mean?

Example: Your 73^rd birthday was any time in 2024. As long as you will reach age 73 by December 31, 2024, you must take your first RMD (for 2024) by April 1, 2025.

Then each year after this you must take your RMD by December 31 of that year.

Can I take more than my RMD amount?

You can withdraw more than the minimum amount required. The total amount you withdraw will be included in your taxable income.

Can I take withdrawals before 73?

Yes. Once you reach 59 ½ you may take withdrawals with no early withdrawal penalty. You will still be responsible for regular income tax on the complete amount withdrawn.

You may also withdraw funds prior to age 59 ½ however, you will likely need to pay an extra 10% early withdrawal penalty in addition to the regular income tax.

Highlights for 2025

Retirement Savings Plan Contribution Limits have changed.

401(k), 403(b), 457 plans, and federal government Thrift Savings Plan contribution limits are $23,500.
1. Catch-up contributions for those over age 50 remain at $7,500.
2. Catch-up contributions for those aged 60-63 remain at $11,250
IRA contribution limits remain at $7,000.
1. Catch-up contributions for those over age 50 remain at $1,000.
SIMPLE IRA contribution limits $16,500.
1. Catch-up contributions for those over age 50 are $3,500.
2. Catch-up contributions for those aged 60-63 are $5,250
SEP IRA contribution limit is $70,000 in 2025.
The Health Savings Account (HSA) contribution limit for single people in 2025 is $4,300 and for family coverage is $8,550
Qualified Charitable Distribution’s annual limit for 2025 is $108,000.

As always, do not hesitate to reach out to our offices at (765) 455-1554 to discuss this.

Thank you for your continued trust and support,

Sycamore Financial Group

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The Low Down on Retirement Accounts

Hello from Sycamore,

It’s that time of year again – if you are over 70 ½ and haven’t taken your Required Minimum Distribution (RMD) for the 2018 tax year, you can expect to be hearing from us!

What is an RMD?

An RMD is the minimum distribution you must withdraw from your retirement account each year.

When do I have to begin taking RMD’s?

You must begin taking your RMD on April 1 of the year following the calendar year in which you reach age 70 ½. What does this really mean?

Example: Your 70^th birthday was June 30, 2017. You reach age 70 ½ on December 30, 2017. You must take your first RMD (for 2017) by April 1, 2018.

Example: Your 70^th birthday was July 2, 2017. You reach age 70 ½ on January 1, 2018. You do not have to take an RMD for 2018. You must take your first RMD (for 2018) by April 1, 2019.

Then each year after this you must take your RMD by December 31 of that year.

Can I take more than my RMD amount?

You can withdraw more than the minimum amount required. The total amount you withdraw will be included in your taxable income.

Can I take withdrawals before 70 ½?

Yes. Once you reach 59 ½ you may take withdrawals with no early withdrawal penalty. You will still be responsible for regular income tax on the complete amount withdrawn.

You may also withdraw funds prior to age 59 ½ however, you will need to pay an extra 10% early withdrawal penalty in addition to the regular income tax.

Highlights for 2019

Retirement Savings Plan Contribution Limits have changed.

401(k), 403(b), 457 plans and federal government Thrift Savings Plan contribution limits increases from $18,500 to $19,000 annually.
1. Catch up contributions for those over age 50 remains unchanged at $6,000.
IRA contribution limits increase from $5,500 to $6,000.
1. The additional catch up contribution remains at and additional $1,000 over the annual limit, now making it $7,000.
SIMPLE IRA contribution limits have increased from $12,500 to $13,000.
1. Catch up contributions limit for those over age 50 remains at $3,000.

For questions or concerns, please don’t hesitate to contact us with any questions.

Thanks for your business and trust!

Allison Rumschik
Sycamore Financial Group