At what age do RMDs start?

Under the SECURE 2.0 Act: if you were born in 1951–1959, RMDs start at age 73. If you were born in 1960 or later, RMDs start at age 75. The first RMD is due by December 31 of the year you reach your required beginning age (or April 1 of the following year for the very first RMD only).

What accounts are subject to RMDs?

RMDs apply to: traditional IRAs, rollover IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, and governmental 457(b) plans. Roth IRAs owned by the original owner are exempt. Starting in 2024, Roth 401(k)s are also exempt from RMDs during the owner's lifetime.

What is the penalty for not taking your RMD?

The SECURE 2.0 Act (2023) reduced the RMD penalty from 50% to 25% of the amount not taken. If you correct the missed RMD within the Correction Window (generally by the end of the second year following the missed RMD year), the penalty is reduced to 10%. You can also request a penalty waiver from the IRS using Form 5329 if the miss was due to reasonable error.

Can I avoid RMDs by converting my IRA to Roth?

Yes — converting traditional IRA funds to Roth eliminates future RMDs on those amounts, since Roth IRAs have no lifetime RMD requirement. The conversion amount is taxable in the year of conversion. Roth conversions are most beneficial when done in lower-income years before RMDs begin, allowing you to convert at lower tax rates and reduce the RMD burden in future higher-income years.

Do I have to take my RMD if I don't need the money?

Yes. RMDs are mandatory regardless of whether you need the income. If you do not need the money, you can invest the after-tax RMD proceeds in a taxable brokerage account. The money continues to grow, just in a different account type with different tax treatment (capital gains rates apply to future growth instead of ordinary income rates).

Guide

RMD Beginner's Guide — Everything You Need to Know About Required Minimum Distributions

What is a Required Minimum Distribution and how does it work?

A Required Minimum Distribution (RMD) is the minimum amount the IRS requires you to withdraw from certain retirement accounts each year once you reach a certain age. The government taxes pre-tax retirement savings as ordinary income when distributed — RMDs ensure that taxes are eventually collected rather than allowing indefinite tax deferral.

Understanding RMDs is essential for every retirement plan. Missing them results in steep penalties; taking too little creates the same problem. This guide covers everything a first-time RMD taker needs to know.

Calculate Your 2026 RMD

Age 73 · Balance $500,000 → ~$18,868 RMD

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Key RMD Rules

1RMDs apply to: traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, 457(b) governmental plans.
2RMDs do NOT apply to: Roth IRAs (during the owner's lifetime), Roth 401(k)s (starting 2024).
3RMD age under current law (SECURE 2.0): age 73 for those born 1951–1959; age 75 for those born 1960 or later.
4Formula: RMD = Prior December 31 balance ÷ IRS Uniform Lifetime Table factor for your age.
5Annual deadline: December 31 each year (first RMD can optionally be delayed to April 1 of the following year).
6Penalty for missing an RMD: 25% of the shortfall (reduced to 10% if corrected within the Correction Window).

Why Does the Government Require RMDs?

Traditional IRAs and 401(k)s are funded with pre-tax dollars — the government deferred tax collection to encourage retirement saving. RMDs are the mechanism for the government to eventually collect that deferred tax revenue. Without RMDs, wealthy retirees could leave entire retirement accounts to heirs, permanently avoiding income tax. The SECURE Act and SECURE 2.0 have extended RMD ages and modified inherited account rules, but the fundamental purpose remains: ensure pre-tax retirement savings are eventually distributed and taxed.

A Simple Example: Your First RMD

You turn 73 in 2026. Your traditional IRA balance was $350,000 on December 31, 2025. The IRS Uniform Lifetime Table factor for age 73 is 26.5. Your 2026 RMD = $350,000 ÷ 26.5 = $13,208. You must withdraw at least $13,208 from your IRA by December 31, 2026. This amount is added to your taxable income for 2026 and taxed at your marginal rate. You can withdraw it as a lump sum or as monthly installments — however you prefer, as long as the total reaches $13,208 by December 31.

Common RMD Mistakes to Avoid

⚠Thinking Roth IRAs require RMDs — they do not during the owner's lifetime.
⚠Not knowing you have an inherited IRA that requires distributions — inherited accounts have their own RMD rules.
⚠Forgetting to take an RMD in the first year — the first year is when most mistakes happen because the rules are new.

Related RMD Tools & Guides

RMD CalculatorFull interactive calculator with tax estimate RMD HubAll RMD guides, tables, and tools How to Calculate Your RMDStep-by-step formula with worked example RMD Table ExplainedHow to read the IRS life expectancy table RMD Deadlines & TimingWhen you must take your first and annual RMDs Required Beginning DateApril 1 rule and first-year distribution choices RMD at Age 73Distribution factor 26.5 — first RMD year RMD Table 2026Current year distribution factors

Frequently Asked Questions

Disclaimer: This content is for informational purposes only and does not constitute tax or financial advice. RMD rules are based on IRS Publication 590-B and SECURE 2.0 Act provisions. Always consult a qualified tax professional or financial advisor for guidance specific to your situation. IRS rules may change; verify current requirements at irs.gov.

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