Required minimum distributions, usually called RMDs, are the withdrawals the IRS makes you take from most tax-deferred retirement accounts once you reach a certain age. For years, the money in a traditional IRA or 401(k) grows without annual tax. RMD rules make sure that money eventually comes out and gets taxed, whether or not you need it for living expenses.
Understanding the rules ahead of time can save you from an expensive penalty and help you plan your taxable income in retirement. This guide covers when RMDs begin, which accounts are affected, how the amount is calculated, the deadlines you need to meet, and a few planning ideas that may reduce the sting. Rules can change, so the details below reflect IRS guidance as of October 2026.
What Is a Required Minimum Distribution?
An RMD is the smallest amount you must withdraw from a qualifying retirement account each year after you reach the starting age. You can always take out more than the minimum. What you cannot do is take less without facing an IRS excise tax.
Withdrawals are generally taxed as ordinary income, except for any portion that represents after-tax (nondeductible) contributions. Because RMDs add to your taxable income, they can affect your tax bracket and other income-based calculations in retirement.
When Do RMDs Start?
Under current IRS guidance, you generally must begin taking required minimum distributions at age 73. This age has changed over time: the IRS lists 70½ for years through 2019, 72 for 2020 through 2022, and 73 for 2023 and later.
Your first deadline: the required beginning date
Your first RMD is for the year you turn 73, but you may delay it until April 1 of the following year. Every RMD after that is due by December 31.
That flexibility has a catch. If you delay the first withdrawal to April 1, you will take two RMDs in the same calendar year: the delayed first one and the regular second one due by December 31. The IRS gives a simple illustration: a person who turns 73 in July 2024 has a first RMD due by April 1, 2025, and a second due by December 31, 2025. Doubling up can raise your taxable income for that year.
The still-working exception
If you are still employed, a 401(k), 403(b), or similar workplace plan may let you delay RMDs from that plan until you retire, if the plan allows it. This exception does not apply to IRAs, and it does not apply to people who own 5% or more of the business sponsoring the plan.
Which Accounts Require RMDs?
| Account type | RMDs during owner’s lifetime? | Notes |
|---|---|---|
| Traditional IRA | Yes | Starting at 73, even if still working |
| SEP IRA and SIMPLE IRA | Yes | Same rules as traditional IRAs |
| 401(k), 403(b), profit-sharing plans | Yes | May delay until retirement if plan permits (not for 5% owners) |
| Roth IRA | No | Beneficiaries are subject to distribution rules |
| Designated Roth account in a 401(k) or 403(b) | No | Beneficiaries are subject to distribution rules |
The Roth exemption is a key reason some savers value Roth accounts. Our comparison of Roth IRA vs. traditional IRA explains how this fits with the other tax trade-offs.
How to Calculate Your RMD
The basic formula is straightforward:
- Find the account balance as of December 31 of the prior year.
- Look up your distribution period (a life expectancy factor) in the IRS Uniform Lifetime Table, using the age you reach in the current year.
- Divide the balance by that factor.
Most account owners use the Uniform Lifetime Table. If your sole beneficiary is your spouse and that spouse is more than 10 years younger than you, you use the Joint Life and Last Survivor Expectancy Table instead, which produces a smaller required amount. The tables are published in IRS Publication 590-B.
A hypothetical example
Suppose a hypothetical retiree, Pat, turns 73 this year and had $400,000 in a traditional IRA on December 31 of last year. The Uniform Lifetime Table factor for age 73 is 26.5.
- $400,000 divided by 26.5 equals about $15,094.
Now imagine Pat is 75 in a later year with a hypothetical prior-year balance of $380,000. Publication 590-B shows a factor of 24.6 for age 75.
- $380,000 divided by 24.6 equals about $15,447.
Because the factor shrinks as you age, the percentage you must withdraw rises over time. These figures are illustrations only; your custodian may also calculate the amount for you, but you remain responsible for getting it right.
Multiple Accounts: Aggregation Rules
If you have more than one account, the rules depend on the account type:
- IRAs: Calculate the RMD for each IRA separately, then add them up. You may take the total from one IRA or split it among several.
- 403(b) contracts: The same aggregation approach works: total the amounts and take them from any one or more 403(b)s.
- 401(k) and 457(b) plans: Each plan’s RMD must be taken from that plan. You cannot satisfy one 401(k)’s requirement with a withdrawal from another.
- Mixing types: An IRA withdrawal does not satisfy an RMD owed from a workplace plan, and vice versa.
A few other rules are worth remembering. Withdrawing more than the minimum in one year does not give you credit toward next year. RMD amounts also cannot be rolled over into another tax-deferred account.
Penalties for Missing an RMD
If you withdraw less than required, the IRS imposes an excise tax of 25% on the shortfall. That rate drops to 10% if you correct the mistake within the IRS correction window, which is generally two years. The tax is reported on Form 5329.
For example, if a hypothetical required amount was $10,000 and nothing was withdrawn, the excise tax could be $2,500, or $1,000 if corrected in time. The withdrawal itself is still taxable income. Setting up automatic distributions with your custodian is one practical way to avoid missing a deadline.
Planning Strategies to Consider
RMDs are mandatory, but how you handle them can make a difference:
- Avoid the double-up year if it hurts. Taking your first RMD in the year you turn 73, instead of waiting until April 1, can keep two distributions from landing in one tax year.
- Consider qualified charitable distributions. If you are at least 70½, you can direct IRA money straight to an eligible charity. A QCD can count toward your RMD and is excluded from taxable income. For 2026, the annual QCD limit is $111,000, as of October 2026. QCDs cannot come from SEP or SIMPLE IRAs while they are ongoing plans.
- Plan your withholding. Since RMDs are taxable, think about whether to have tax withheld or make estimated payments.
- Coordinate with your overall income plan. RMDs interact with Social Security, pensions, and other withdrawals. Our guide to making sure your retirement income lasts covers how to organize these sources.
Keep in mind that the money you withdraw does not have to be spent. You can reinvest it in a regular taxable account, although it will not regain its tax-deferred status. Any investment carries risk, including possible loss of principal.
Frequently Asked Questions
Do I have to take an RMD from my Roth IRA?
No. Roth IRAs and designated Roth accounts in workplace plans do not require withdrawals while the original owner is alive. Beneficiaries who inherit them are subject to distribution rules.
What happens if I inherit an IRA?
Different rules apply. Under IRS guidance, many non-spouse beneficiaries must empty an inherited IRA by the end of the 10th year after the owner’s death, while certain eligible designated beneficiaries have other options. Publication 590-B covers the details.
Can I take my RMD in monthly installments?
Yes. The rules require a minimum total for the year, not a single payment. Many custodians let you schedule monthly or quarterly withdrawals, as long as the full amount is out by the deadline.
Can I put my RMD back into my IRA?
No. RMD amounts are not eligible for rollover into another tax-deferred account. You can, however, invest the cash in a taxable account. For broader context, see our retirement checklist.
Bottom Line
Required minimum distributions generally begin at age 73 for traditional IRAs and most workplace plans, while Roth accounts are exempt during the owner’s lifetime. The amount is your prior year-end balance divided by an IRS life expectancy factor, and missing it can trigger a 25% excise tax. Mark your deadlines, understand how your accounts aggregate, and consider tools like QCDs. A tax professional can help with complex situations.
Sources
- IRS – Retirement Topics: Required Minimum Distributions (RMDs)
- IRS – Retirement Plan and IRA Required Minimum Distributions FAQs
- IRS – RMD Comparison Chart (IRAs vs. Defined Contribution Plans)
- IRS – Publication 590-B, Distributions from Individual Retirement Arrangements
- IRS – Notice 2025-67, 2026 Amounts Relating to Retirement Plans and IRAs
This article is for general information only and is not financial advice. See our Disclaimer.
