SIMPLE IRA RMD Rules — Required Minimum Distributions from SIMPLE Plans

What are the RMD rules for a SIMPLE IRA?

SIMPLE IRA (Savings Incentive Match Plan for Employees) Required Minimum Distributions follow the same rules as traditional IRAs. The starting age is 73, the IRS Uniform Lifetime Table applies, and SIMPLE IRA balances aggregate with traditional IRA and SEP IRA balances for RMD purposes.

One SIMPLE IRA-specific rule worth noting at retirement age: the 2-year rule. During the first 2 years of participation in a SIMPLE IRA plan, early withdrawals carry a 25% penalty (instead of the standard 10%). By retirement age this rule is long past, but it is relevant for understanding the account's history.

SIMPLE IRAs are small business and employee retirement accounts. Like SEP IRAs, all contributions are pre-tax, so all distributions — including RMDs — are taxed as ordinary income.

Key RMD Rules

• 1SIMPLE IRA RMD rules are identical to traditional IRA rules — same age (73), same table, same deadlines.
• 2Aggregation: SIMPLE IRA balances aggregate with traditional and SEP IRA balances for the combined RMD.
• 3The combined RMD can be taken from any one traditional/SEP/SIMPLE IRA.
• 4All SIMPLE IRA distributions are taxed as ordinary income.
• 5SIMPLE IRAs can be rolled over to a traditional IRA after the 2-year participation period, which may simplify RMD management.

Related RMD Tools & Guides