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A required minimum distribution, or RMD, is the minimum amount you generally have to withdraw each year from certain retirement accounts once you reach the applicable RMD age.
Traditional IRAs, SEP IRAs, SIMPLE IRAs and most pre-tax workplace retirement accounts are subject to RMD rules. Roth IRAs do not require distributions during the original owner’s lifetime, and SECURE 2.0 also removed lifetime RMDs from designated Roth workplace accounts beginning in 2024.
For many people currently approaching RMD age, distributions begin at 73. The scheduled age rises to 75 for younger generations.
The rule sounds simple, but the deadline, calculation and tax consequences can get expensive if you get them wrong.
Key takeaways
- RMDs generally begin at age 73 for people born from 1951 through 1959.
- The scheduled RMD age is 75 for people born in 1960 or later.
- Traditional IRAs, SEP IRAs, SIMPLE IRAs and most traditional workplace plans are subject to RMD rules.
- Roth IRAs and designated Roth workplace accounts have no lifetime RMDs for the original owner.
- Many workers can delay RMDs from their current employer’s workplace plan until retirement, but this exception does not apply to IRAs and generally does not apply to 5% business owners.
- Your RMD is generally based on the prior December 31 account balance divided by an IRS life-expectancy factor.
- A missed RMD can trigger a 25% excise tax on the shortfall, potentially reduced to 10% if corrected within the IRS correction window.
- The IRS can also waive the penalty when the shortfall resulted from reasonable error and you take reasonable steps to fix it.
- The 2026 QCD limit is $111,000, and a qualifying QCD can satisfy all or part of an IRA RMD.
What is a required minimum distribution?
An RMD is a mandatory minimum withdrawal from certain retirement accounts.
Traditional retirement accounts often allow you to defer federal income tax while money remains in the account. RMD rules eventually require part of that balance to come out.
You can withdraw more than your RMD if you want.
What you cannot do is withdraw less than the required amount by the deadline without potentially triggering an IRS penalty.
Most RMDs from accounts funded with pre-tax money are taxable as ordinary income when withdrawn. If your IRA contains nondeductible contributions or other after-tax basis, however, part of a distribution may be nontaxable.
That is why an RMD should not automatically be described as 100% taxable for every taxpayer.
Which retirement accounts have RMDs?
Here is the basic breakdown for the original account owner:
| Account | Lifetime RMDs? |
|---|---|
| Traditional IRA | Yes |
| SEP IRA | Yes |
| SIMPLE IRA | Yes |
| Traditional 401(k) | Yes |
| Traditional 403(b) | Yes |
| Traditional governmental 457(b) | Yes |
| Roth IRA | No |
| Roth 401(k) | No |
| Other designated Roth workplace accounts | No |
Roth workplace accounts used to have lifetime RMDs even though Roth IRAs did not. SECURE 2.0 eliminated that requirement beginning in 2024.
That makes Roth accounts useful for people who want more control over how much retirement money they withdraw each year.
But do not confuse no lifetime RMD for the owner with no distribution rules forever.
After the owner dies, beneficiaries of Roth IRAs and designated Roth workplace accounts can be subject to inherited-account RMD and distribution rules.
See our guide to Roth IRAs for how the account works during your lifetime.
At what age do RMDs start?
SECURE 2.0 changed the starting age.
For most people planning under current rules:
| Year of birth | RMD age |
|---|---|
| 1951 to 1959 | 73 |
| 1960 or later | 75 |
People born earlier may already be subject to older RMD starting ages.
If you turn 73 under the current rules, your first RMD is for the year you turn 73.
However, you generally have until April 1 of the following year to take that first distribution.
Every later RMD is generally due by December 31.
Be careful before delaying your first RMD
The April 1 rule sounds like free extra time, but delaying can create an unwanted tax problem.
Suppose your first RMD is for 2026.
You could wait until April 1, 2027 to take it.
But your 2027 RMD would still be due by December 31, 2027.
You would therefore receive two RMDs during 2027:
- Your delayed 2026 RMD
- Your regular 2027 RMD
That can push more taxable income into one year.
Depending on your situation, the extra income could also affect the taxable portion of Social Security benefits or contribute to higher Medicare income-related premiums in a later year.
So do not automatically delay the first RMD just because the IRS allows it.
Compare the tax impact of taking it in the first year versus doubling up the following year.
What if I am still working at 73?
This is one of the most important RMD exceptions, and it is easy to miss.
For many employer retirement plans, you may be able to delay RMDs until after you retire.
For example, if you are 74 and still working for the company sponsoring your 401(k), the plan may allow you to postpone RMDs from that account until retirement.
However, there are important limits.
The exception generally applies only to the current employer’s plan
It does not automatically let you postpone RMDs from:
- Traditional IRAs
- SEP IRAs
- SIMPLE IRAs
Those accounts generally follow the age-based RMD deadline even if you are still working.
The 5% owner exception
If you own more than 5% of the business sponsoring the workplace plan, the still-working exception generally is not available.
Your plan can be stricter
Federal rules can permit delayed RMDs, but a workplace plan may require distributions to begin earlier.
Check your plan document or ask the administrator rather than assuming that continuing to work automatically delays your RMD.
How are RMDs calculated?
The standard formula is:
Prior-year December 31 account balance ÷ IRS life-expectancy factor = RMD
For most retirement account owners, the factor comes from the IRS Uniform Lifetime Table.
There is an exception if your spouse is your sole beneficiary and is more than 10 years younger than you. In that case, a different IRS table can produce a smaller required distribution.
Example: $500,000 IRA at age 73
At age 73, the Uniform Lifetime Table factor is 26.5.
If your traditional IRA balance was $500,000 on December 31 of the previous year:
$500,000 ÷ 26.5 = $18,867.92
Your RMD would therefore be about $18,868.
That equals roughly 3.77% of the starting balance.
As you age, the IRS denominator generally gets smaller, which means a larger percentage of the account must be distributed.
What happens if my investments fall after December 31?
Your RMD is generally based on the previous year-end balance, not the account’s value on the day you take the withdrawal.
Suppose your IRA was worth $500,000 on December 31 but falls to $400,000 before you take the RMD.
The RMD calculation generally still starts with the $500,000 year-end figure.
That can make RMDs feel larger during a sharp market decline.
You can usually choose which investments to sell to generate the required cash, and some custodians may allow in-kind distributions of securities rather than requiring you to sell everything first.
The tax and operational details can differ, so confirm the process with your custodian before using an in-kind RMD.
What if I have more than one retirement account?
This is where the rules become less intuitive.
Multiple IRAs
You calculate the RMD for each traditional IRA separately.
You can then add the IRA RMDs together and withdraw the total from one IRA or several of them.
For example:
- IRA 1 RMD: $5,000
- IRA 2 RMD: $3,000
- IRA 3 RMD: $2,000
Total IRA RMD: $10,000
You could potentially take the entire $10,000 from IRA 1.
Multiple 403(b) accounts
403(b) RMDs are also generally calculated separately, but the total can be taken from one or more of your 403(b) contracts.
Multiple 401(k)s or 457(b)s
Do not use the IRA aggregation rule here.
RMDs from 401(k) and 457(b) plans generally have to be satisfied separately from each plan.
That distinction matters if you retired with several old workplace accounts.
Consolidating accounts before RMD age can sometimes simplify administration, although rollover decisions have other tax, investment and creditor-protection considerations.
Can I take more than my RMD?
Yes.
An RMD is a minimum, not a maximum.
If your RMD is $20,000, you can withdraw $30,000 if you need the money.
But the extra $10,000 does not count toward next year’s RMD.
Each year’s requirement is calculated separately.
In other words, you cannot “prepay” several future RMDs by taking one large withdrawal today.
Can I reinvest an RMD?
You cannot roll an RMD back into another tax-deferred retirement account.
Once the required distribution comes out, it has satisfied the RMD requirement and is generally not eligible for rollover treatment.
If you do not need the money for living expenses, you may still be able to invest the after-tax proceeds in a taxable brokerage account, subject to normal investment rules.
The key difference is that the money is no longer sheltered inside the original tax-deferred retirement account.
What happens if you miss an RMD?
The current penalty is lower than the old 50% penalty, but it can still be expensive.
If you fail to take the full RMD by the deadline, the shortfall can be subject to an excise tax of 25%.
Example
Suppose your RMD was $20,000 but you withdrew only $12,000.
Your shortfall is:
$20,000 − $12,000 = $8,000
A 25% excise tax on that shortfall would be:
$8,000 × 25% = $2,000
SECURE 2.0 provides a lower rate when the mistake is corrected properly.
The excise tax can fall to 10% if you correct the shortfall during the applicable correction window and meet the IRS requirements.
The correction window generally ends at the earliest of certain IRS enforcement events or the end of the second taxable year beginning after the year in which the tax was imposed.
The IRS may waive an RMD penalty
Do not assume that every accidental RMD mistake automatically means you must pay 25% or 10%.
The IRS can waive some or all of the tax if:
- The shortfall resulted from reasonable error, and
- You are taking reasonable steps to correct it.
The taxpayer generally uses Form 5329 and attaches an explanation when requesting reasonable-cause relief.
If you discover a missed RMD, correct it rather than waiting to see whether the IRS notices.
Because the filing procedure can depend on the year and circumstances, this is one of the situations where getting professional tax help may be worthwhile.
How are RMDs taxed?
An RMD is not a special RMD tax.
Instead, the taxable portion of the distribution is generally included in your ordinary income for the year.
If the account contains only deductible contributions and tax-deferred earnings, most or all of the RMD may be taxable.
If you made nondeductible traditional IRA contributions, part of your distributions may represent after-tax basis and therefore may not be taxed again.
Form 8606 can become important in that situation.
RMD income can matter beyond the basic income tax bill because higher income may affect:
- How much of your Social Security is taxable
- Medicare income-related premiums
- Certain deductions and credits
- Your overall marginal tax rate
That is why RMD planning often starts years before the first required withdrawal.
How can you reduce future RMDs?
There is no legitimate way to simply ignore an RMD once it is required.
But you can potentially reduce the amount held in accounts that will eventually be subject to RMDs.
Consider Roth conversions before RMD age
A Roth conversion moves money from a traditional retirement account into a Roth account.
The converted taxable amount generally creates income in the year of conversion, but it also reduces the traditional balance that can generate future RMDs.
For example, someone who retires at 65 but does not start RMDs until 73 may have several lower-income years in which partial Roth conversions are worth evaluating.
That does not mean “convert everything.”
A large conversion can push you into a higher tax bracket and can affect Medicare premiums and other tax calculations.
The goal is to compare the tax paid today with the potential tax saved later.
See our Roth conversion guide for the full strategy.
Spend from pre-tax accounts strategically
Some retirees automatically avoid touching traditional retirement money until the IRS forces them to.
That is not always optimal.
Taking planned withdrawals during lower-income retirement years can reduce the account balance that will later generate RMDs.
Whether that beats leaving the money invested depends on your tax brackets, other income, Social Security timing and estate goals.
Build Roth money while you are still working
Roth IRAs and designated Roth workplace accounts do not require lifetime RMDs for the original owner under current rules.
Building some Roth savings can therefore give you more control over taxable income later in retirement.
That does not mean Roth always beats Traditional.
See our Traditional vs. Roth IRA guide for the tax-now versus tax-later trade-off.
How can a QCD help with an RMD?
A qualified charitable distribution, or QCD, can be especially useful for someone who already gives money to charity.
Once you are at least 70½, you can potentially have money transferred directly from an eligible IRA to a qualifying charity.
A valid QCD can count toward all or part of your IRA RMD while generally keeping the qualifying distribution out of gross income.
For 2026, the annual QCD exclusion limit is $111,000 per eligible individual.
Example
Suppose:
- Your IRA RMD is $25,000.
- You already plan to donate $10,000 to charity.
- You meet the QCD requirements.
You could potentially send $10,000 directly from the IRA to the qualifying charity as a QCD.
That $10,000 can count toward the RMD.
You would then need another $15,000 of distributions to satisfy the $25,000 total requirement.
The advantage is not that you receive both a QCD exclusion and a second charitable deduction for the same $10,000. You generally do not.
The potential benefit is keeping the qualifying IRA distribution out of gross income in the first place.
QCD rules include restrictions on eligible accounts, charities and timing, so arrange the transfer through your IRA custodian rather than withdrawing the money personally and donating it afterward.
RMD planning is really tax planning
The RMD calculation itself is usually not the hard part.
The harder question is what the distribution does to the rest of your finances.
Imagine two retirees with identical $25,000 RMDs.
One needs the money for living expenses.
The other already has enough pension and Social Security income and does not need another $25,000.
Their planning problems are completely different.
The second retiree may care much more about Roth conversions, charitable giving, Medicare income thresholds and what eventually passes to beneficiaries.
That is why the best time to think about RMDs may be before the first one is due.
Frequently asked questions
At what age do RMDs start in 2026?
For people currently reaching RMD age, the applicable age is generally 73. Under current SECURE 2.0 rules, people born from 1951 through 1959 generally use age 73, while people born in 1960 or later are scheduled to use age 75.
Do Roth IRAs have RMDs?
No. Roth IRAs do not require distributions during the original owner’s lifetime. SECURE 2.0 also removed lifetime RMDs from designated Roth workplace accounts beginning in 2024. Beneficiaries can still be subject to inherited-account distribution requirements.
Do I need an RMD from my 401(k) if I am still working?
Maybe not. Many workplace plans allow participants to delay RMDs until retirement. The exception generally does not apply to 5% owners, and the plan itself can require earlier distributions. It also does not let you postpone RMDs from traditional, SEP or SIMPLE IRAs.
How is an RMD calculated?
Generally, divide the account’s previous December 31 balance by the applicable IRS life-expectancy factor. At age 73, the Uniform Lifetime Table factor is 26.5 for most account owners. A different table can apply when your sole beneficiary is a spouse more than 10 years younger.
What is the penalty for missing an RMD?
The excise tax is generally 25% of the amount you failed to withdraw. It can be reduced to 10% when the mistake is corrected within the IRS correction window and the requirements are met. The IRS may also waive the tax for reasonable error when appropriate corrective steps are taken.
Can I take all of my IRA RMD from one IRA?
Yes. You calculate the RMD separately for each IRA but can generally take the combined IRA amount from one or more of your IRAs. Do not assume the same rule applies to 401(k)s and 457(b)s, which generally must satisfy their RMDs separately.
Can a QCD satisfy my RMD?
Yes. A qualified charitable distribution from an eligible IRA can satisfy all or part of the RMD if the QCD requirements are met. The 2026 QCD limit is $111,000 per eligible individual.
Can I take more than my RMD this year and use the extra next year?
No. Taking more than the required amount does not reduce a future year’s RMD.
The bottom line
RMDs are mandatory retirement-account withdrawals, but age 73 is not the entire story.
Traditional IRAs generally require distributions once you reach the applicable age even if you are still working. Some workplace plans can let you delay RMDs until retirement. Roth IRAs and designated Roth workplace accounts now have no lifetime RMDs for the original owner.
For most accounts, the calculation starts with your prior-year December 31 balance divided by an IRS life-expectancy factor. At age 73, that factor is generally 26.5.
The bigger planning question is what happens after the withdrawal hits your tax return.
If you have several years before RMDs begin, partial Roth conversions or planned traditional-account withdrawals may reduce future forced distributions. If you are already taking RMDs and give to charity, a QCD can be especially valuable. The 2026 QCD limit is $111,000.
And if you miss an RMD, fix it quickly. The standard excise tax can be 25%, but prompt correction can reduce it to 10%, and reasonable-cause relief may sometimes eliminate the penalty.
For more retirement planning:
- Retirement Accounts Explained
- Roth conversion guide
- Roth conversion ladder explained
- Traditional vs. Roth IRA
This article is for educational and informational purposes only and is not individualized tax, legal or investment advice. RMD rules, tax limits and IRS guidance can change. Verify the rules for your accounts and tax year with IRS.gov, your retirement-plan administrator or a qualified tax professional before acting.
