As year-end approaches, many investors still need to take required withdrawals from retirement accounts — or face an IRS penalty of up to 25%. This includes retirees and certain heirs with an inherited individual retirement account .

At age 73, most retirees must start required minimum distributions , or RMDs, from pretax accounts. Your first RMD is due by April 1 of the year after turning 73, and the deadline for future withdrawals is Dec. 31. For heirs facing RMDs, the annual deadline is also Dec. 31.

With the annual deadline nearing, many investors haven't yet made their required withdrawal, according to data from Fidelity.

As of Nov. 30, 53% of Fidelity investors who needed a 2025 RMD hadn't taken one — and 29% of those outstanding RMDs were from inherited IRAs, Fidelity rep

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