Required Minimum Distributions (RMDs): Rules, Age & Calculation
When Do RMDs Start?
| Birth Year | RMD Starting Age | First RMD Deadline |
|---|---|---|
| 1950 or earlier | 72 (already started) | Already passed |
| 1951–1959 | 73 | April 1 of the year after turning 73 |
| 1960 or later | 75 | April 1 of the year after turning 75 |
Your first RMD must be taken by April 1 of the year following the year you reach the applicable age. Every subsequent RMD must be taken by December 31. If you delay your first RMD to April 1, you will have two RMDs in the same calendar year (the delayed first one plus the current year’s), which could push you into a higher tax bracket.
How to Calculate Your RMD
You use your account balance as of December 31 of the previous year and divide it by the distribution period from the IRS Uniform Lifetime Table based on your age. If your sole beneficiary is a spouse who is more than 10 years younger, you use the Joint Life and Last Survivor Table instead, which gives a smaller RMD.
| Age | Distribution Period | Approx. RMD % of Balance |
|---|---|---|
| 73 | 26.5 | 3.77% |
| 75 | 24.6 | 4.07% |
| 80 | 20.2 | 4.95% |
| 85 | 16.0 | 6.25% |
| 90 | 12.2 | 8.20% |
| 95 | 8.9 | 11.24% |
If you have multiple traditional IRAs, you calculate the RMD for each separately but can take the total from any one or combination of your IRAs. For 401(k) and 403(b) accounts, you must take the RMD from each plan separately — you cannot aggregate across different employer plans.
Which Accounts Require RMDs?
| Account Type | RMDs Required? | Notes |
|---|---|---|
| Traditional IRA | Yes | Starting at age 73 (75 for those born 1960+) |
| Traditional 401(k) | Yes | Can delay if still working for that employer (not a 5%+ owner) |
| 403(b) | Yes | Same as 401(k) still-working exception |
| SEP IRA | Yes | Treated as traditional IRA for RMD purposes |
| SIMPLE IRA | Yes | Treated as traditional IRA for RMD purposes |
| Roth IRA | No | No RMDs during the original owner’s lifetime |
| Roth 401(k)/403(b) | No (starting 2024) | SECURE 2.0 eliminated Roth employer plan RMDs |
The Penalty for Missing an RMD
Under SECURE 2.0, the penalty for failing to take an RMD was reduced from 50% to 25% of the amount not withdrawn. If you correct the mistake within 2 years (through a correction window), the penalty drops further to 10%. On a $20,000 RMD shortfall, that is a $5,000 penalty (or $2,000 if corrected promptly) — still painful, but much less severe than the previous 50% excise tax.
Strategies to Minimize RMD Tax Impact
Roth Conversions Before RMDs Begin
Converting traditional IRA or 401(k) balances to a Roth IRA in the years between retirement and age 73 can dramatically reduce future RMDs. You pay tax on the conversion amount now, but the converted balance grows tax-free in the Roth and is never subject to RMDs. See our Roth conversion guide for details on the strategy.
Qualified Charitable Distributions (QCDs)
If you are 70½ or older, you can donate up to $105,000 per year directly from your traditional IRA to a qualified charity. The distribution satisfies your RMD but is not included in your taxable income. This is the most tax-efficient way to fulfill charitable giving commitments in retirement.
Still-Working Exception
If you are still employed and participate in your current employer’s 401(k) or 403(b), you can delay RMDs from that specific plan until you actually retire (as long as you do not own 5% or more of the company). This does not apply to IRAs or plans from previous employers.
Key Takeaways
- RMDs are mandatory withdrawals from traditional retirement accounts starting at age 73 (75 for those born in 1960 or later under SECURE 2.0).
- Calculate your RMD by dividing your prior-year account balance by the IRS life expectancy factor for your age.
- Roth IRAs are exempt from RMDs during the original owner’s lifetime — making them powerful estate planning tools.
- The penalty for missing an RMD is 25% (reduced to 10% if corrected within 2 years).
- Pre-RMD Roth conversions and qualified charitable distributions are the two most effective strategies for managing RMD tax impact.
Frequently Asked Questions
Do I have to spend my RMD or can I reinvest it?
You must withdraw it from the retirement account, but you can reinvest it immediately in a taxable brokerage account. The withdrawal triggers income tax regardless of what you do with the money afterward. Many retirees take their RMD and invest it in the same funds they held inside the IRA.
Can I take more than my RMD?
Yes. The RMD is the minimum you must withdraw. You can always take more, but you cannot carry excess withdrawals forward to reduce future RMDs. Each year’s RMD is calculated independently based on that year’s account balance and your age.
Do inherited IRAs have RMDs?
Yes. Under the SECURE Act, most non-spouse beneficiaries must empty an inherited IRA within 10 years of the original owner’s death. Spouse beneficiaries can treat the IRA as their own and follow standard RMD rules. The 10-year rule applies regardless of whether the beneficiary needs the money or not.
How do RMDs interact with Social Security taxation?
RMD income counts as provisional income for determining whether your Social Security benefits are taxable. Up to 85% of Social Security benefits can be taxed if your provisional income exceeds $44,000 (married filing jointly). Large RMDs can push you above this threshold, creating an effective marginal tax rate well above your nominal bracket.
Can I convert my RMD to a Roth IRA?
No. The RMD amount itself cannot be converted to a Roth. You must take the RMD first, then you can convert any additional amount above the RMD. This is why pre-RMD Roth conversions are so valuable — once RMDs start, they cannot be redirected into a Roth.