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A required minimum distribution (RMD) is the minimum amount the IRS makes you withdraw each year from tax-deferred retirement accounts, starting at age 73. Traditional IRAs and 401(k)s have RMDs; Roth IRAs do not during the owner’s lifetime, which is one of the Roth’s biggest advantages.
For decades your retirement accounts grow tax-deferred, but eventually the IRS wants its share. That is what RMDs are: mandatory withdrawals that begin in your 70s so the government can finally tax the money. Even if you do not need the cash, you have to take it. Here is how RMDs work, when they start, how they are calculated, and how to reduce them. For the full account picture, see our retirement accounts hub.
- RMDs currently begin at age 73. Under SECURE 2.0, the age rises to 75 starting in 2033 for people born in 1960 or later.
- They apply to Traditional IRAs, SEP and SIMPLE IRAs, and most workplace plans (401(k), 403(b), 457(b)). Roth IRAs have no RMDs during the owner’s lifetime.
- Roth 401(k)s used to require RMDs, but SECURE 2.0 eliminated that starting in 2024.
- The amount is your prior-year-end balance divided by an IRS life-expectancy factor; the percentage rises as you age.
- Missing an RMD triggers a penalty of 25% of the shortfall, reduced to 10% if you correct it promptly, so the deadlines matter.
What is a required minimum distribution?
An RMD is the smallest amount you must withdraw from a tax-deferred retirement account each year once you reach the required age. Because you got a tax deduction (or tax deferral) on the way in and never paid tax on the growth, the IRS uses RMDs to ensure the money is eventually taxed rather than growing tax-deferred forever. You can always withdraw more than the RMD; you just cannot withdraw less without a penalty.
Which accounts have RMDs?
| Account | RMDs during your lifetime? |
|---|---|
| Traditional IRA | Yes, starting at 73 |
| SEP IRA / SIMPLE IRA | Yes, starting at 73 |
| Traditional 401(k), 403(b), 457(b) | Yes, starting at 73 |
| Roth 401(k) | No (eliminated starting 2024) |
| Roth IRA | No (none during owner’s lifetime) |
The Roth IRA’s freedom from RMDs is a major planning advantage: your money can keep compounding tax-free for as long as you live, and your heirs inherit a tax-free account. It is one more reason the Roth often wins for long-term savers.
At what age do RMDs start?
SECURE 2.0 changed the timeline. The current RMD age is 73, and it is scheduled to rise to 75.
- Born 1951 to 1959: RMDs begin at age 73.
- Born 1960 or later: RMDs begin at age 75, starting in 2033.
Your first RMD can be delayed until April 1 of the year after you reach the required age (the “required beginning date”). Every RMD after that is due by December 31. One caution: if you delay your first RMD to April 1, you will take two RMDs in that year (the delayed first one plus that year’s), which can spike your taxable income.
How are RMDs calculated?
Your RMD equals your account balance on December 31 of the prior year divided by a life-expectancy factor from the IRS Uniform Lifetime Table. The factor shrinks as you age, so the percentage you must withdraw rises over time, from under 4% in your early 70s to higher percentages later.
Example: at age 73, the Uniform Lifetime Table factor is 26.5. With a $500,000 IRA balance at the prior year-end, your RMD is $500,000 divided by 26.5, or about $18,868 for the year. If you have multiple IRAs, you total the RMDs and can take the combined amount from any one of them; 401(k)s generally must be calculated and withdrawn separately from each plan.
What is the penalty for missing an RMD?
Missing an RMD, or taking too little, used to carry a steep 50% penalty on the shortfall. SECURE 2.0 reduced it to 25%, and to 10% if you correct the mistake promptly (generally within a two-year correction window) and file the right form. It is still a penalty worth avoiding, so set a reminder or ask your custodian to automate your RMD each year.
How can you reduce future RMDs?
- Roth conversions before 73. Converting Traditional IRA money to Roth in lower-income years (for example, between retiring and starting Social Security) shrinks the balance subject to future RMDs. See our Roth conversion guide.
- Qualified charitable distributions (QCDs). From age 70.5, you can donate directly from an IRA to charity, up to an annually indexed limit (about $108,000 in 2025), and it counts toward your RMD without being added to your taxable income.
- Favor Roth accounts while saving. Roth IRAs have no lifetime RMDs, so building Roth balances during your working years reduces forced withdrawals later.
RMDs also matter because they can push up the taxable portion of your Social Security and your Medicare premiums, so managing them is part of a broader tax plan. See how Social Security taxation works.
Frequently Asked Questions
Currently age 73. Under SECURE 2.0, people born in 1960 or later will start RMDs at 75, beginning in 2033. Your first RMD can be delayed to April 1 of the year after you reach the required age, with all later RMDs due by December 31.
No. Roth IRAs have no required minimum distributions during the original owner’s lifetime, so the money can keep growing tax-free. SECURE 2.0 also eliminated RMDs for Roth 401(k)s starting in 2024. Inherited Roth IRAs do have distribution rules for beneficiaries.
Divide your account balance on December 31 of the prior year by the life-expectancy factor from the IRS Uniform Lifetime Table. For example, at 73 the factor is 26.5, so a $500,000 balance produces an RMD of about $18,868. The required percentage rises as you get older.
The penalty is 25% of the amount you failed to withdraw, reduced to 10% if you correct it promptly and file the proper form. The old penalty was 50%. To avoid it, many retirees automate their RMD through their account custodian.
Yes. Common strategies include Roth conversions in lower-income years before 73 (which shrink the balance subject to RMDs), qualified charitable distributions from an IRA after 70.5, and favoring Roth accounts during your working years since they have no lifetime RMDs.
The bottom line
RMDs are mandatory withdrawals from tax-deferred accounts starting at 73 (rising to 75 in 2033), calculated as your prior-year balance divided by an IRS factor. Roth IRAs are exempt, missing an RMD costs 25% (or 10% if corrected), and Roth conversions before 73 are the main way to shrink them.
- New to retirement accounts? Start with our hub, Retirement Accounts Explained.
- Want to cut future RMDs? Read our Roth conversion guide and conversion ladder guide.
- Roth or Traditional? Read our Traditional vs Roth IRA guide.
A quick note: this article is for educational purposes only and is not financial or tax advice. RMD rules, ages, and the QCD limit come from the IRS and can change; verify current figures at IRS.gov and consult a qualified tax professional about your own required distributions.
