One of the biggest advantages of saving in retirement accounts like a 401(k) or IRA is that you can deduct your contribution from your taxes. On top of that, your investments in those accounts grow tax free. The only time you'll owe taxes is when you take money out of your retirement accounts. That can give you a lot more money to invest today, as well as result in a bigger nest egg when it comes time for you to retire.

But eventually the government wants its tax revenue. That's why it imposes required minimum distributions, or RMDs. Once you reach a certain age, you must start making annual withdrawals from most traditional retirement accounts. And you'll have to pay the income taxes on those withdrawals too. RMDs can also apply to inherited IRAs regardless of how old you are.

If you don't know all the RMD rules, you could face a hefty fine from the IRS. The government will take up to a 25% penalty on any amount you fail to withdraw on time. Not to mention that you'll still have to take the distribution and pay the income taxes on it.

So, making sure you're up-to-date on the RMD rules can be extremely valuable. Unfortunately, the rules have changed quite a bit in recent years. Here are three RMD rule changes from 2024 you don't want to forget.

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1. Roth 401(k)s are no longer subject to RMDs

Anyone who opted into their workplace's Roth 401(k) and used it as their only retirement account could've been in for a rude awakening until 2024. That's because while the Roth IRA has never been subject to RMDs, its 401(k) counterpart still required retirees to take annual distributions from their Roth accounts. That changed in 2024, and Roth 401(k) are no longer subject to RMDs.

There was a workaround that retirees could use if they needed to avoid RMDs in the past: They could roll over their Roth 401(k) to a Roth IRA. However, Roth IRA withdrawals are subject to the five-year rule. The rule requires you to have established a Roth IRA for at least five years before you can withdraw earnings from your investments in the account. Violating the five-year rule results in paying taxes on the earnings withdrawn from the account, even though the big tax advantage of a Roth IRA is that you don't normally pay taxes on withdrawals.

The combination of the RMD rules on Roth 401(k)s and the five-year rule on Roth IRAs could leave some retirees in a spot where they had to either withdraw more than they wanted from their Roth 401(k), not withdraw enough from a Roth IRA, or pay a penalty tax for withdrawing the actual amount they need. Thankfully, Congress changed the rules on Roth 401(k)s with the Secure 2.0 Act, removing RMDs from Roth 401(k) accounts.

2. More inherited IRAs are subject to RMDs

The Secure Act made some big changes to inherited IRAs after it passed in 2019. The biggest change was that most people inheriting an IRA in 2020 or later from someone other than their spouse had to deplete the entire account within 10 years.

This new 10-year rule called into question whether a beneficiary would also have to continue taking RMDs from an account prior to depleting the account entirely. Due to the confusion, the IRS waived the requirement between 2020 and 2024. However, the IRS made a definitive ruling last summer.

Anyone subject to the 10-year rule who inherited an IRA from someone after their required beginning date (i.e., they were already subject to RMDs) must continue taking RMDs each year until the account is empty. While it makes sense to spread out your distributions from an inherited IRA, losing the flexibility of not having to take RMDs can sting.

3. This RMD strategy got an inflation adjustment

One of the best strategies for charitable seniors is to use a qualified charitable distribution (QCD) from their IRA instead of donating cash or other assets to nonprofits. A QCD is a direct transfer from your IRA to a nonprofit. And that distribution will count toward your required minimum distribution for your IRA(s).

The Secure 2.0 Act updated the rules on QCDs to add an inflation adjustment starting in 2024. Last year, the limit was $105,000. In 2025, the limit went up to $108,000.

There are a couple of important details about QCDs retirees need to know. First, they only apply to IRAs. That means if you also have a 401(k) or another type of retirement account, you'll still have to take RMDs from those accounts.

Second, the limit is per individual, so if you and your spouse are facing big required minimum distributions from your IRAs, you can donate a combined $216,000 in 2025 directly from your retirement savings.

A QCD is one of the best ways to donate. Since the distribution goes directly from your IRA to your nonprofit of choice, it has no effect on your income. That means you won't have to itemize your deductions in order to get the tax benefits of your donation. Instead, you can take the standard deduction, which usually results in greater tax savings for seniors.

Additionally, since the distribution won't affect your income, it means your adjusted gross income will be lower, potentially decreasing your Medicare Part B premiums or lowering the amount of Social Security benefits subject to income tax.

Even if you won't max out the $108,000 limit on QCDs, it can be a great strategy for lowering your RMD and your taxes in 2025.