Withdrawals
Required Minimum Distributions (RMDs): Age, Rules, and Deadlines
Past a certain age, the IRS makes you start pulling money out of most retirement accounts every year. We'll cover when these required minimum distributions kick in, how the amount's figured, and the mistakes we see most.
The rules at a glance
- RMDs start at age 73, or at 75 if you were born in 1960 or later.
- Your first RMD can wait until April 1 of the following year, but that can mean taking two RMDs in one year.
- The amount is your prior December 31 balance divided by a factor from an IRS life expectancy table.
- IRA RMDs can be combined and taken from any of your IRAs, but each 401(k) has to pay its own RMD.
- Missing an RMD can cost 25% of the shortfall, cut to 10% if you correct it in time.
What's an RMD, and which accounts have them?
Traditional IRAs and 401(k)s let your money grow for decades without a yearly tax bill, which is a terrific deal while it lasts, but the government was always going to want its income tax on that money eventually, and RMDs are how it collects. A required minimum distribution, or RMD, is the least you must withdraw from these accounts each year once you hit a certain age.
Take out more whenever you like. Take out less and there's a penalty.
These accounts have RMDs:
- Traditional IRAs, including SEP and SIMPLE IRAs
- 401(k), 403(b), and 457(b) plans, along with most other workplace plans
- Self-directed IRAs, including gold IRAs
Roth IRAs don't have RMDs while the original owner is alive. And starting in 2024, Roth 401(k)s and other Roth accounts in workplace plans no longer require RMDs from the owner either.
Inherited accounts play by different rules, which we don't cover here. The IRS explains them in Publication 590-B.
When do they start?
Under the SECURE 2.0 Act, your RMD age depends on the year you were born:
| Year you were born | RMD age |
|---|---|
| 1951 through 1959 | 73 |
| 1960 or later | 75 |
Born in 1960 or later? You've got until 75. Anyone born earlier than 1951 fell under older rules and should already be taking RMDs.
The first one, and the April 1 trap
Your first RMD is for the year you reach RMD age. You have until April 1 of the following year to take it. Every RMD after that is due by December 31.
That April 1 grace period has a catch. Say you turn 73 this year and push your first RMD to April 1 next year. Your second RMD is still due by December 31 next year, so you've stacked two RMDs into one tax year, which can shove you into a higher bracket and also change how your Social Security benefits are taxed and what you pay for Medicare.
Plenty of people just take the first one in the year they reach RMD age to spread out the tax. Either way's allowed. Which is better depends on your income in each year.
How the amount is figured
The formula's short:
RMD = account balance on December 31 of last year ÷ your distribution period
The distribution period comes from an IRS table. Most people use the Uniform Lifetime Table. Its factor shrinks every year as you age. So the share you have to take out creeps up.
One exception. If your spouse is your only beneficiary and is more than 10 years younger than you, you'll use the Joint Life and Last Survivor Table instead, and it produces a smaller RMD.
Worked example
These are round, made-up numbers. Say you turn 73 this year, and your traditional IRA was worth $500,000 on December 31 of last year. In the current Uniform Lifetime Table, the factor for age 73 is 26.5.
$500,000 ÷ 26.5 = about $18,868. That's your RMD for the year.
Next year, you repeat the math with the new December 31 balance and the factor for your new age. IRS Publication 590-B and the IRS RMD page have the full table. Your custodian or plan will likely run the numbers for you, but making sure the RMD actually comes out is on you.
Can you combine RMDs from different accounts?
This is where people trip.
| Account type | How RMDs work |
|---|---|
| Traditional, SEP, and SIMPLE IRAs | Figure the RMD for each IRA, add them up, and take the total from any one or more of your IRAs. |
| 403(b) accounts | Figure each one separately, then take the total from any one or more of your 403(b)s. |
| 401(k) and 457(b) plans | Each plan must pay out its own RMD. You cannot take one plan's RMD from another plan. |
You can't mix categories, either. Taking extra from an IRA won't satisfy a 401(k)'s RMD, and the reverse doesn't work. Spouses each take their own RMDs from their own accounts.
Picture having two old 401(k)s from past jobs plus three IRAs. The IRAs can share one combined withdrawal. Each 401(k) needs its own, every single year, which is one reason some people consolidate before RMD age. Our guide to your choices for an old 401(k) lays out the trade-offs.
Taxes, and one thing you can't do
RMDs from traditional accounts are taxed as ordinary income, except for any after-tax money you put in. You can ask for federal income tax to be withheld from the payment, which helps you avoid underpaying during the year.
What about a gold IRA?
Same rules as any traditional IRA. The wrinkle is that the account holds metal, not cash, so there may be little or no cash sitting there ready to send you unless you've planned for it. To meet the RMD, you can:
- Sell some metal through your custodian and withdraw the cash
- Take an in-kind distribution, where metal is shipped to you and its fair market value counts toward your RMD
- Take the whole amount from another traditional IRA instead, since IRA RMDs can be combined
Start early. Selling metal takes longer than selling a fund, and we wouldn't leave it to the week before Christmas. Our guides on selling gold from an IRA and gold IRA vs. gold ETF go deeper.
Giving to charity straight from your IRA
If you give to charity anyway, a qualified charitable distribution (QCD) is one of the better tools around. Starting at age 70½, you can have money sent directly from your IRA to a qualified charity.
- The amount generally stays out of your taxable income.
- Once you reach RMD age, a QCD counts toward your RMD for the year.
- The money has to go straight from the IRA to the charity. A check made out to you doesn't qualify.
- There's a yearly dollar limit, adjusted for inflation. Check the current figure on IRS.gov.
- QCDs come from IRAs. You can't do one directly from a 401(k).
- Donor-advised funds and most private foundations can't receive QCDs.
Because the money's left out of income entirely, a QCD helps even if you take the standard deduction and never itemize, which is a real edge over writing the charity a check from your checking account. Ask your custodian how they handle QCD requests, and hang on to the charity's written acknowledgment.
A yearly routine
- In January, note each account's December 31 balance.
- Calculate or confirm the RMD for each account.
- Pick which IRAs your combined IRA RMD comes from, and set up each 401(k)'s RMD separately.
- Choose your tax withholding.
- Take the RMD well before December 31, so a slow custodian doesn't cause a miss.
If you miss one
Take less than your full RMD and the IRS can charge an excise tax of 25% of the amount you should have taken but didn't.
Fix it quickly and that drops to 10%. In practice that means taking the missed amount and filing the correction within the IRS's correction window, which generally runs until the end of the second year after the year the tax applies, unless the IRS acts first. Rules on the edges can differ, so confirm the timing for your case.
The IRS can also waive the penalty entirely if the shortfall came from a reasonable error and you're taking steps to fix it. You ask for that on Form 5329 with a short explanation. Found a missed RMD? Take it as soon as you can and talk with a tax professional.
Common questions
Do I have to spend my RMD?
No. You have to withdraw it, but you can save or reinvest it in a regular bank or brokerage account. You just can't put it back into a traditional IRA as a rollover.
Can I take my RMD in monthly payments?
Yes. One lump sum or several payments through the year both work, as long as the full amount is out by the deadline.
Does taking more than my RMD this year lower next year's?
Not directly. Extra withdrawals don't carry forward as a credit. They do lower your balance, which can shrink future RMDs.
Do I have RMDs on my Roth IRA?
Not while you're alive. Roth IRAs have no RMDs for the original owner, and starting in 2024 Roth 401(k)s don't either. Beneficiaries who inherit Roth accounts do face distribution rules.
How do I find my RMD amount?
Many custodians and plans calculate it and show it on your statement or website. Our RMD calculator lets you check the math yourself.
We base our guides on primary sources such as the IRS, the Department of Labor, and federal regulators. Read our editorial policy. Spot an error? Tell us.
