Guide
Required minimum distributions
When withdrawals become mandatory, how they are calculated, and how to avoid the penalty.
A required minimum distribution (RMD) is the minimum amount you must withdraw each year from most tax-deferred retirement accounts once you reach the required age. The rules exist so that pre-tax balances are eventually taxed.
When RMDs begin
Under current law, RMDs generally begin at age 73. Your first RMD can be delayed until April 1 of the year after you turn 73 — but that means taking two RMDs in the same year.
How the amount is calculated
Divide your prior-year-end account balance by a life-expectancy factor from the IRS Uniform Lifetime Table. A different table applies if your sole beneficiary is a spouse more than ten years younger. Our RMD estimator does this math for a single account.
Which accounts
Traditional, SEP, and SIMPLE IRAs and most employer plans require RMDs. Roth IRAs have no RMDs during the original owner’s lifetime. IRAs can be aggregated — you may total the RMDs across your IRAs and take the sum from any one of them — but employer plans generally must be taken separately.
Missing an RMD
Failing to take a full RMD triggers an excise tax on the shortfall, reduced if you correct it promptly. Calendar your RMDs and confirm the amount each year.
Qualified charitable distributions
If you are at least 70 and a half, you may direct up to an annual limit from an IRA to charity as a qualified charitable distribution, which can satisfy your RMD without adding to taxable income. Requires tax review
FAQ
Do inherited accounts have RMDs?
Often yes, under different rules — see the beneficiaries guide. The timeline depends on the owner’s date of death and your beneficiary category.
Can I reinvest an RMD?
You must withdraw it from the retirement account, but you can reinvest the after-tax proceeds in a taxable account.
Are Roth 401(k)s subject to RMDs?
Designated Roth accounts in employer plans are no longer subject to lifetime RMDs under recent law; confirm your plan’s treatment.
Sources include the Internal Revenue Service and U.S. Department of Labor. This guide is general information, not tax or legal advice; confirm specifics with a qualified professional.
Educational only. This page is general information, not individualized investment, legal, or tax advice. Rules depend on your account type, transaction, tax year, and circumstances — consult a qualified professional.