In just over a week, retirees making their first mandatory retirement plan withdrawal will be penalized if they do not make the withdrawal by the end of April 1.

Payments from retirement plans are usually made by the end of the year, though retirees who turned 72 in 2022 are covered by a rule allowing any of them involved in workplace retirement plans to wait until as late as April 1 to take their first required minimum distribution payment or RMD. After this first payment, future RMD payments must be made by Dec. 31 of every year following, according to the IRS.

TAX SEASON 2023: IRS ISSUES WARNING ABOUT SCAMMERS OFFERING 'HELP' TO SET UP ONLINE ACCOUNT

Any retirees who fail to withdraw their first RMD or do not take out enough money for the payment will receive a 25% penalty based on the amount recipients need to withdraw. The exact amount one should withdraw every year for their RMDs is usually calculated by dividing each retirement account’s prior balance on Dec. 31 by a “distribution period” published every year by the IRS, according to CNBC.

The retirement plans that this deadline applies to include traditional, SEP, and SIMPLE IRAs while the original owner is alive, as well as those who own 401(k), 403(b), and 457(b) plans. For the 2022 RMD, the amount can be found on the 2021 Form 5498, which was issued to owners of retirement plans in 2022.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

Recipients who are receiving this RMD by April 1 should also know that it is taxable for the 2023 tax year and needs to be reported on one's 2024 tax return.

Additional information regarding this deadline can be found online on the IRS's website.