Retirees have only five days to make their mandatory withdrawal from their retirement plans to avoid paying a penalty.

Retirement plan payments are typically withdrawn by the end of a year, but for those retirees who turned 72 last year and are part of a workplace retirement plan, the deadline was extended to Saturday. Those people, however, will be subject to making subsequent withdrawals by Dec. 31 of every year.

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The deadline applies to various retirement plans, including traditional IRA, SEP-IRA, SIMPLE IRA, 401(k), 403(b), and 457(b) plans.

For the mandatory withdrawal, or required minimum distribution, for 2022, the necessary amount can be found on the 2021 Form 5498. These forms were given to retirees in 2022.

Retirees who do not take out their first RMD or fail to withdraw enough money for the payment will receive a 25% penalty based on the amount recipients need to withdraw.

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The amount that a retiree should withdraw every year for one's RMD is calculated by dividing each retirement account’s prior balance on Dec. 31 by a “distribution period” published each year by the Internal Revenue Service, per CNBC.

Those who receive their RMD by Saturday must report it on their tax returns next year, as it will be taxable for the 2023 tax year. More information regarding the deadline can be found on the IRS's website.