Accounts that require an RMD
| Account type | RMD required? | Born 1951 - 1959 | Born 1960 or later* |
|---|---|---|---|
| Traditional IRA | Yes | Starts at age 73 | Starts at age 75 |
| SEP IRA / SIMPLE IRA | Yes | Starts at age 73 | Starts at age 75 |
| 401(k) / 403(b) | Yes | Starts at age 73; may allow a still-working exception | Starts at age 75; may allow a still-working exception |
| Roth IRA | No | No RMDs during the original owner’s lifetime | No RMDs during the original owner’s lifetime |
| Roth 401(k) / Roth 403(b) | No | As of 2024, no longer subject to RMDs during the owner’s life | As of 2024, no longer subject to RMDs during the owner’s life |
Source: 1, 2; *Becomes effective in 2033
Inherited accounts of any type follow a different set of rules based on your relationship to the original owner, and when they died, the thresholds below don’t apply to inherited retirement accounts.
When you have to start taking RMDs
You generally must take your first RMD for the year you turn age 73. Under the SECURE 2.0 Act, that age rises to 75 for people born in 1960 or later, so younger readers may enjoy a later start date.
Your first RMD comes with a grace period: you can wait to take it until April 1 of the year after you turn 73. Every RMD after that, including your second one, is due by December 31 of each year. Delaying your first RMD to April 1 means two taxable distributions land in the same calendar year, which can push you into a higher tax bracket, so many people choose to take their first RMD by December 31 of the year they turn 73.
You’ll receive a 1099-R reporting the distribution each year you take an RMD. You will use this form to complete your tax return each year.
How your RMD is calculated
The math is simpler than it sounds: divide your account balance as of December 31 of the prior year by a life-expectancy factor (based on your age) published by the IRS in its Uniform Lifetime Table. This number decreases each year as you get older, which means the required withdrawal grows as a percentage of your balance over time.
Say you turn 73 this year and your traditional IRA was worth $500,000 at the end of last year. The IRS factor for age 73 is 26.5, so your RMD is:
$500,000 ÷ 26.5 = $18,868 (rounded to the nearest dollar)
Next year, at age 74, the factor drops slightly. Therefore, a similar account balance would require a somewhat larger withdrawal since you’re dividing by a smaller number.
If you have multiple traditional IRAs, you calculate the RMD separately for each one. However, you can withdraw the combined total from just one IRA if that’s more convenient.
Note: 401(k) and 403(b) plans work differently: you can’t combine RMDs across plans. Each plan’s RMD must come out of that specific plan.
The penalty for missing an RMD
Missing an RMD, or withdrawing less than required, triggers a penalty. The IRS currently charges an excise tax of 25% on the amount not withdrawn. The penalty drops to 10% if you correct it within a two-year correction window. You use Form 5329 to report any penalty and to request a reduction of the penalty.
Ways to manage your RMD
- Take more than the minimum: The RMD is a floor, not a ceiling: you can always withdraw more than required in a given year if it makes sense for your finances.
- Aggregate across IRAs: As noted above, you can total up the RMDs owed across all your traditional IRAs and satisfy the combined amount from whichever account or combination of accounts you prefer.
- Use a qualified charitable distribution (QCD): If you’re 70 1/2 or older, you can direct up to $111,000 for 2026 ($108,000 for tax year 2025), indexed for inflation each year, straight from your IRA to a qualifying charity. A QCD counts toward satisfying your RMD but, while it’s reported on Form 1040, it isn’t included in your taxable income, a meaningful advantage over withdrawing the money yourself and donating it afterward.
