• If you turned 73 in 2024, the deadline for your first required minimum distribution, or RMD, is April 1.
• You could see a 25% penalty for skipping the RMD or not withdrawing enough, but it may be possible to reduce the fee.
• Typically, it's better to take your first RMD by Dec. 31 the year you turn 73 to avoid two required withdrawals in the same year, experts say.

If you turned age 73 in 2024, the deadline for your first mandatory retirement plan withdrawal is approaching — and missing the due date could trigger a hefty IRS tax penalty.   

Most retirees must start taking required minimum distributions by age 73. These withdrawals apply to pre-tax individual retirement accounts and workplace plans like 401(k) plans. Roth accounts aren't subject to RMDs until after death.

The yearly deadline for RMDs is Dec. 31, but retirees have until April 1 the year after turning 73 for the first withdrawal only.

More from Personal Finance:
The Fed holds interest rates steady. What that means for your money
What could happen to student loans without the Education Department
There’s a ‘danger zone’ for retirees when the stock market dips

You could face a 25% penalty

Generally, you calculate RMDs for each account by dividing the prior Dec. 31 balance by a "life expectancy factor," according to the IRS. Some companies calculate RMDs for you, but you're ultimately responsible for withdrawing the correct amount.  

There's a 25% penalty for skipping the RMD or not withdrawing enough, said certified financial planner Scott Bishop, partner and managing director of Presidio Wealth Partners, based in Houston.

But the IRS could reduce the fee to 10% if you correct the mistake, withdraw the proper amount within two years and file Form 5329. 

"If you miss [the RMD], own up to it," Bishop said. "Make sure you're timely with it."  

In some cases, the IRS could waive the penalty entirely if you show the shortfall happened due to "reasonable error" and you're taking "reasonable steps" to fix it, according to the agency.

Why you should take your first RMD sooner

While retirees have until April 1 the year after turning 73 for their first RMD, many advisors suggest withdrawing the funds by Dec. 31 of the previous year. 

"I almost always say take it the first year," said George Gagliardi, a CFP and founder of Coromandel Wealth Management in Lexington, Massachusetts.

If you wait until April 1 for your first RMD, you still have to take the second one by Dec. 31 of the same year. Pre-tax withdrawals incur regular income taxes, so you're "doubling up" for that year, Gagliardi said.

Boosting your adjusted gross income can trigger various tax consequences, including higher Medicare Part B and D premiums.

However, there are some scenarios where it makes sense to delay your first RMD until April 1, Gagliardi said.

For example, the year you turn age 73 could be higher-income due to capital gains or another event that wouldn't repeat, he said.