Many retirees soon must take year-end required withdrawals — and mistakes can be costly

As December approaches, some older Americans must soon take required withdrawals from retirement accounts — and mistakes can be costly, according to financial experts.

Starting at age 73, most retirees must start required minimum distributions, or RMDs, from pretax accounts, based on your balances, age and an IRS “life expectancy factor.”

Your first RMD is due by April 1 of the year after turning 73, and Dec. 31 is the deadline for future withdrawals. Waiting until April 1 after turning 73 means you would need two RMDs that year.

Millions of retirees must follow complicated RMD rules or potentially face an IRS penalty. The requirements can be difficult to follow amid changing legislation and IRS guidance, experts say.

“RMD mistakes rarely come from neglect. They come from complexity,” said certified financial planner Scott Van Den Berg, president of advisory firm Century Management in Austin. “People don’t realize how many accounts they have, who’s responsible for what or how quickly the rules have changed.”