If you have saved in a traditional IRA, 401(k), 403(b) or similar tax-deferred account, the IRS eventually requires you to start taking money out, so that the deferred taxes are paid. These yearly withdrawals are called required minimum distributions, or RMDs.
When RMDs begin
Your RMD age depends on your birth year:
| Year of birth | Age RMDs begin |
|---|---|
| 1950 or earlier | Already required |
| 1951 to 1959 | 73 |
| 1960 or later | 75 |
You must take your first RMD by April 1 of the year after you reach your RMD age. After that, each RMD is due by December 31.
Delaying the first RMD until April 1 means you will take two RMDs in that same year, the first by April 1 and the second by December 31, which could push you into a higher tax bracket. Many people take the first one in the year they reach RMD age to spread out the tax.
Which accounts are affected
RMDs apply to:
- Traditional IRAs, SEP IRAs and SIMPLE IRAs.
- 401(k), 403(b) and 457(b) plans.
- Most other employer retirement plans.
RMDs do not apply to:
- Roth IRAs, while the original owner is alive.
- Roth 401(k) and Roth 403(b) accounts, starting in 2024.
If you are still working and do not own 5% or more of the company, your employer's plan may let you delay RMDs from that plan until you retire. This exception does not apply to IRAs.
How the amount is calculated
Your RMD for each account is generally:
Account balance on December 31 of the prior year ÷ life expectancy factor
The factor comes from the IRS Uniform Lifetime Table. For example, the factor at age 73 is 26.5. A person with $200,000 in an IRA at the end of the prior year would need to withdraw about $7,547 that year.
If your spouse is your sole beneficiary and is more than 10 years younger, you use a different table that results in smaller RMDs. Your account custodian usually calculates the amount for you, but it is your responsibility to make sure it is taken.
Taxes on RMDs
RMDs are taxed as ordinary income, except for any after-tax contributions. You can ask the custodian to withhold federal and state tax from the withdrawal. RMDs count as income when figuring how much of your Social Security is taxable and whether you pay higher Medicare premiums. See is Social Security income taxable?
Giving to charity with a QCD
If you are 70½ or older, you can give directly from an IRA to a qualified charity through a qualified charitable distribution, or QCD. QCDs can count toward your RMD and are not included in your taxable income. The limit is $111,000 per person in 2026. The money must go directly from the IRA to the charity.
If you miss an RMD
The penalty for missing all or part of an RMD is 25% of the amount not taken. It drops to 10% if you correct the mistake within two years. You can also ask the IRS to waive the penalty if the shortfall was due to a reasonable error and you have fixed it, using Form 5329 with an explanation.
Inherited accounts
Different rules apply to inherited IRAs and retirement accounts, and many non-spouse beneficiaries must empty the account within 10 years. If you inherit an account, check the rules or ask a tax professional before making any withdrawals.
Plan ahead
The years between retirement and your RMD age can be a good time to plan withdrawals or Roth conversions to manage future taxes. Because the right strategy depends on your whole financial picture, consider talking with a tax professional or fee-only financial planner.
