Tax-deferred retirement accounts let your savings grow for decades without annual taxes, but the IRS eventually wants its share. Required minimum distributions, usually called RMDs, are the minimum amounts you must withdraw each year from most traditional retirement accounts once you reach a certain age. The rules have changed several times in recent years under the SECURE Act and SECURE 2.0, so the age you start, the penalties, and the treatment of Roth accounts may differ from what you remember. This guide covers the current RMD rules and practical ways to manage them.
*This article is for general information only and is not tax or financial advice. Confirm your situation with your plan administrator, the IRS, or a qualified professional.*
Which accounts have RMDs
RMDs generally apply to:
- Traditional IRAs, including SEP IRAs and SIMPLE IRAs.
- Traditional 401(k), 403(b), and governmental 457(b) plans.
- Other employer-sponsored defined contribution plans.
RMDs do not apply during the owner’s lifetime to:
- Roth IRAs.
- Roth 401(k) and Roth 403(b) accounts, starting in 2024 under SECURE 2.0.
Beneficiaries who inherit any of these accounts, including Roth accounts, are generally subject to their own distribution rules.
When RMDs start
SECURE 2.0 raised the starting age in steps:
| Year you were born | RMD starting age |
|---|---|
| 1950 or earlier | 72 (or 70½ if born before July 1, 1949) |
| 1951 through 1959 | 73 |
| 1960 or later | 75 |
Your first RMD is for the year you reach your starting age. You can delay that first withdrawal until April 1 of the following year, but you must then take your second RMD by December 31 of that same year. Taking two distributions in one year can push you into a higher tax bracket, so many people take the first one in the year they reach the starting age.
Every RMD after the first must be taken by December 31.
The still-working exception
If you are still working past your RMD age and are not a 5% or greater owner of the business, your current employer’s plan may let you delay RMDs from that plan until April 1 after the year you retire. This exception does not apply to IRAs or to plans from previous employers.
How to calculate your RMD
The basic formula for account owners is:
RMD = account balance on December 31 of the prior year ÷ life expectancy factor
Most owners use the IRS Uniform Lifetime Table in Publication 590-B. For example, the factor at age 73 is 26.5, at age 74 is 25.5, and at age 75 is 24.6.
Example
Suppose your traditional IRA balance was $400,000 on December 31, 2025, and you turn 74 in 2026. Your 2026 RMD is $400,000 ÷ 25.5 = about $15,686.
If your spouse is your sole beneficiary and more than 10 years younger, you use the Joint Life and Last Survivor Expectancy Table instead, which produces a smaller RMD.
Your IRA custodian or plan administrator will usually calculate your RMD and can set up automatic distributions, but you remain responsible for getting it right.
Aggregation rules
How you can combine RMDs depends on the account type:
- IRAs: calculate the RMD for each traditional IRA separately, then take the total from any one or more of your IRAs.
- 403(b) plans: calculate separately, but the total can be taken from any combination of your 403(b) accounts.
- 401(k) and 457(b) plans: each plan’s RMD generally must come from that plan.
You cannot satisfy an IRA RMD with a 401(k) withdrawal, or vice versa. Married couples cannot combine RMDs across spouses.
The penalty for missing an RMD
If you fail to take your full RMD on time, the IRS imposes an excise tax on the shortfall. SECURE 2.0 reduced it:
- 25% of the amount not withdrawn, down from 50% previously.
- 10% if you correct the shortfall within the correction window, generally by the end of the second year after the year it was due, and file the required form.
You report the shortfall on Form 5329. The IRS may waive the penalty if the shortfall resulted from reasonable error and you are taking steps to fix it; you request the waiver by attaching an explanation to Form 5329.
How RMDs are taxed
RMDs from traditional accounts are taxed as ordinary income at your federal bracket rates, and often by your state. They can also have indirect effects:
- Taxation of Social Security. Higher income can make more of your benefits taxable, up to 85%.
- Medicare premiums. Income above certain thresholds triggers IRMAA surcharges on Part B and Part D premiums, based on income from two years earlier.
- The senior deduction. For 2025 through 2028, the new deduction of up to $6,000 for people 65 and older phases out above $75,000 of MAGI for single filers and $150,000 for joint filers. Large RMDs can reduce it.
You can have federal tax withheld from RMDs. Withholding is treated as paid evenly through the year, which can help avoid estimated tax payments.
Strategies to manage RMDs
Qualified charitable distributions
If you are 70½ or older, you can transfer money directly from an IRA to a qualified charity as a qualified charitable distribution (QCD). The amount counts toward your RMD but is excluded from taxable income. The annual QCD limit is more than $100,000 per person and is indexed for inflation. The transfer must go directly from the IRA to the charity, and donor-advised funds do not qualify.
Roth conversions before RMDs begin
Converting part of a traditional IRA to a Roth IRA in lower-income years, often between retirement and RMD age, reduces future RMDs because Roth IRAs have none for the owner. You pay income tax on the converted amount in the year of conversion. You cannot convert an RMD itself; the RMD must be taken first.
Qualified longevity annuity contracts
A QLAC is a deferred annuity purchased inside an IRA or plan that starts payments as late as age 85. Money used to buy a QLAC, up to a dollar limit set by the IRS, is excluded from RMD calculations until payments begin.
Plan your withdrawal timing
Taking RMDs early in the year gives certainty; taking them late allows more tax-deferred growth. Spreading withdrawals monthly can work like a paycheck. If you need more than the RMD for living expenses, consider how withdrawals from taxable, tax-deferred, and Roth accounts interact with your bracket.
Inherited account rules
Since 2020, most non-spouse beneficiaries must empty inherited retirement accounts within 10 years of the original owner’s death. If the original owner had already started RMDs, the beneficiary must also take annual RMDs in years one through nine, under final IRS regulations that apply from 2025.
Certain “eligible designated beneficiaries” can still stretch distributions over their life expectancy, including:
- A surviving spouse.
- A minor child of the owner, until age 21, after which the 10-year rule applies.
- Disabled or chronically ill individuals.
- Beneficiaries not more than 10 years younger than the owner.
A surviving spouse has additional options, such as treating the account as their own.
Frequently Asked Questions
What age do RMDs start?
Age 73 for people born from 1951 through 1959, and age 75 for people born in 1960 or later.
Do Roth IRAs have required minimum distributions?
Not for the original owner. Beginning in 2024, Roth 401(k) and Roth 403(b) accounts also have no lifetime RMDs. Beneficiaries generally do have distribution requirements.
What is the penalty for missing an RMD?
A 25% excise tax on the shortfall, reduced to 10% if corrected promptly within the correction window. The IRS may waive it for reasonable error.
Can I take my RMD from just one IRA?
Yes. If you own several traditional IRAs, you can add up each account’s RMD and withdraw the total from any of them. Employer plans like 401(k)s have stricter rules.
Can I reinvest my RMD?
You cannot roll an RMD into another tax-advantaged retirement account, but you can invest it in a taxable brokerage account or use it to fund a Roth IRA contribution if you have earned income and meet the income limits.
Does a qualified charitable distribution count toward my RMD?
Yes. A QCD can satisfy all or part of your RMD while keeping that amount out of your taxable income.
The bottom line
Required minimum distributions start at 73 for most current retirees and 75 for those born in 1960 or later. Calculate them from your prior year-end balance and the IRS life expectancy tables, take them by December 31, and remember that the penalty for missing one is now smaller but still costly. Planning ahead with Roth conversions, QCDs, and careful withdrawal timing can reduce the tax impact over your retirement.
This article is for general informational purposes only and is not legal, medical, tax, or financial advice. Rules vary by state and change over time; confirm details with the relevant agency or a licensed professional.
