If you have money in a traditional IRA, 401(k), or most other tax-deferred retirement accounts, the IRS requires you to start withdrawing a minimum amount each year once you reach age 73. These are called Required Minimum Distributions, or RMDs. Missing one or taking too little triggers a steep penalty. This page explains how RMDs work, how the amount is calculated, which accounts are affected, and how to fit them into your broader retirement income plan.
What You Need to Know About RMDs
RMDs exist because the government allowed you to defer taxes on retirement savings for decades. At some point, those taxes come due. The IRS sets a schedule — based on your age and account balance — that determines the minimum you must withdraw each year. You can always take out more than the minimum, but you cannot take less.
When RMDs Begin
Under current law (the SECURE 2.0 Act), RMDs begin at age 73 for most people. If you were born between 1951 and 1959, your RMD age is 73. If you were born in 1960 or later, it rises to 75. The first RMD must be taken by April 1 of the year after you turn 73. Every subsequent RMD is due by December 31 of that year. If you delay your first RMD to April 1, you will owe two RMDs in the same calendar year — which can push you into a higher tax bracket.
Which Accounts Require RMDs
RMDs apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) plans, and most other employer-sponsored retirement accounts. Roth IRAs held by the original owner are exempt — you are never required to take distributions during your lifetime. Roth 401(k) accounts were also subject to RMDs before 2024, but the SECURE 2.0 Act eliminated that requirement starting in 2024.
How the Amount Is Calculated
Your RMD is calculated by dividing your account balance as of December 31 of the prior year by a life expectancy factor from the IRS Uniform Lifetime Table. For example, if your IRA balance on December 31 was $500,000 and your factor is 26.5, your RMD would be approximately $18,868. The IRS publishes updated tables and provides an online RMD calculator. If you have multiple IRAs, you calculate each separately but can take the total from any combination of those accounts.
The Penalty for Missing an RMD
Missing an RMD or taking less than required used to trigger a 50% excise tax on the shortfall — one of the steepest penalties in the tax code. The SECURE 2.0 Act reduced this to 25%, and further to 10% if you correct the mistake within two years. Even so, the penalties are substantial. If you realize you have missed an RMD, correct it as soon as possible and consider filing IRS Form 5329 to request penalty abatement for a reasonable cause.
RMDs and Taxes
RMD withdrawals count as ordinary income in the year you take them. That means they add to your taxable income alongside Social Security, pension payments, and any other income. A large RMD can push you into a higher tax bracket, increase how much of your Social Security is taxable, or trigger IRMAA surcharges on Medicare Part B and Part D premiums. Planning the size and timing of RMDs — including Roth conversions in earlier years — can significantly reduce the long-term tax impact.
Inherited IRAs and RMDs
If you inherit an IRA from someone other than a spouse, different rules apply. Under the SECURE Act, most non-spouse beneficiaries must withdraw the full balance within 10 years of the original owner’s death. Spouses who inherit an IRA have more flexibility — they can treat the IRA as their own and apply the standard RMD rules based on their own age. The rules for inherited accounts are complex and have changed significantly in recent years; consulting a tax advisor is worthwhile.
Who This Page Is For
- Anyone who has reached or is approaching age 73 with money in a traditional IRA or 401(k)
- Retirees who want to understand how RMDs fit into their overall income and tax picture
- People considering Roth conversions to reduce future RMD obligations
- Anyone who has inherited an IRA and needs to understand the withdrawal rules
- Savers in their 60s who want to plan ahead before RMDs begin
What to Do Next
- Find your RMD age — if you were born before 1960, your age is 73; born in 1960 or later, it is 75
- Use the IRS RMD calculator (available at irs.gov) or ask your account custodian — most brokerage and IRA providers will calculate your RMD for you each year
- If you have multiple IRAs, total them up — you can satisfy the combined RMD by withdrawing from any one or combination of those accounts
- Consider whether Roth conversions in years before RMDs begin could reduce your future taxable withdrawals — read the Taxes in Retirement page for more on this
- If you have a 401(k) at a current employer, confirm whether the still-working exception applies to you — some plans allow you to delay RMDs if you are still employed
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