You get a tax break on traditional retirement savings, but not forever. At a certain age the government requires you to start taking money out and paying tax on it. These are required minimum distributions, or RMDs.
Who has to take them
RMDs apply to most tax-deferred retirement accounts: traditional IRAs, SEP and SIMPLE IRAs, and employer plans such as 401k and 403b plans. Roth IRAs do not have them while you are alive. Neither do designated Roth accounts in a 401k from 2024.
When they start
The starting age depends on when you were born:
| Born | RMDs start at |
|---|---|
| 1951 to 1959 | 73 |
| 1960 or later | 75 |
Your first RMD is due by April 1 of the year after you reach the starting age. Every later one is due by December 31 of each year. Waiting until April 1 for your first one means you must take two in that year, which can push you into a higher tax bracket.
How the amount is worked out
- Take your account balance on December 31 of the previous year.
- Find the distribution period for your age in the IRS Uniform Lifetime Table.
- Divide the balance by that number.
Example. You are 75 and had $500,000 on December 31. The table gives 24.6 for age 75. $500,000 ÷ 24.6 = $20,325 for the year.
Here are a few values from the table. The full list is on our RMD table page.
| Age | Divisor |
|---|---|
| 73 | 26.5 |
| 75 | 24.6 |
| 80 | 20.2 |
| 85 | 16.0 |
| 90 | 12.2 |
The divisor shrinks as you get older, so the percentage you must take out rises each year.
If you own several accounts
You work out the RMD for each account. For IRAs you can add the totals and take the sum from any one or more IRAs. For 401k plans, each plan's RMD generally has to be taken from that plan.
Still working?
If you are still working for the employer that sponsors your 401k, and you do not own 5% or more of the company, your plan may let you delay RMDs from that plan until you retire. This does not apply to IRAs or to old 401k plans from previous jobs.
What happens if you miss one
If you do not take the full amount, you may owe a 25% excise tax on what you should have taken. If you fix it within 2 years, the tax can drop to 10%. Contact your plan or a tax professional right away if you miss one.
Ways to plan ahead
- Know your date. Put the deadline in your calendar.
- Consider Roth conversions in lower-income years. Money in a Roth does not have RMDs. See our Roth conversion guide.
- Take them gradually so you do not forget, for example with monthly payments.
- Think about taxes. RMDs are taxed as income and can affect other taxes, such as the tax on Social Security.
A note on the table
The Uniform Lifetime Table is for most people. If your spouse is your only beneficiary and is more than 10 years younger, a different IRS table gives a smaller RMD.
Use our RMD calculator to work out your amount and see a projection of future years.
RMD calculator Find your required withdrawal for this year and see future years.Sources
- IRS: Retirement topics, required minimum distributions
- IRS Publication 590-B (2025), Table III Uniform Lifetime
This article is for education and is not financial, tax or legal advice. Figures are checked against the sources above and may change. Read the full disclaimer.