India, March 30 -- Retired workers in the United States who are reaching the age of 72 reportedly need to comply with the Required Minimum Distribution (RMD) law no later than April 1 if they want to avoid risking penalties from the Internal Revenue Service. Retirees must take a minimum amount in withdrawals from their withdrawal account every year. If they fail to do so, the IRS can hand out a penalty worth 25% of the amount.

IRS, a US government agency, collects taxes and looks after the enforcement of tax laws. The service's main purpose is to collect individual and employment taxes.

The rule applies to Individual Retirement Accounts (IRAs) too. This means that if the original account holder dies before reaching the RMD age, their he...