What is the deadline for the first Required Minimum Distribution (RMD) for non-5% owners?

The first Required Minimum Distribution (RMD) for non-5% owners must be taken no later than April 1 following the attainment of age 72 or the year in which the individual retires, whichever comes later. This deadline is significant because it reflects the IRS rules aiming to ensure that individuals begin to withdraw funds from their tax-deferred retirement accounts, thereby paying the relevant taxes on those distributions.

Attaining age 72 marks the age at which the IRS requires individuals to start taking distributions, regardless of their employment status. Notably, if an individual retires after age 72, that person's first RMD deadline still applies for the year following retirement. This way of structuring the RMD rules helps ensure that tax-deferred retirement accounts are gradually depleted during retirement while also managing tax liabilities.

Thus, the requirement emphasizes the necessity for account holders to be aware of their age and retirement status when planning their withdrawals, ensuring compliance with tax regulations.