Required minimum distributions (RMDs): age 73 rules explained
Quick answer: a required minimum distribution (RMD) is the minimum amount you must withdraw each year from most tax-deferred retirement accounts once you reach the required age. Under the SECURE 2.0 Act, RMDs start at age 73 if you were born between 1951 and 1959, and at age 75 if you were born in 1960 or later. Your first RMD is due by April 1 of the year after you reach that age; after that, by December 31 each year.
RMD starting age
| Year of birth | RMD starting age |
|---|---|
| 1950 or earlier | 72 (or 70 1/2 if born before July 1, 1949) |
| 1951-1959 | 73 |
| 1960 or later | 75 |
Which accounts have RMDs?
| Account | RMDs for the owner? |
|---|---|
| Traditional IRA, SEP IRA, SIMPLE IRA | Yes |
| 401(k), 403(b), 457(b) (pre-tax) | Yes |
| Roth 401(k) and Roth 403(b) | No (since 2024) |
| Roth IRA | No, during the owner’s lifetime |
| Inherited IRAs | Yes, under separate beneficiary rules |
If you are still working and do not own 5% or more of the company, you can usually delay RMDs from your current employer’s plan until you retire. This does not apply to IRAs.
How to calculate your RMD
RMD = account balance on December 31 of last year ÷ distribution period from the IRS Uniform Lifetime Table for your age.
| Age | Distribution period | RMD on a $500,000 balance |
|---|---|---|
| 73 | 26.5 | $18,868 |
| 75 | 24.6 | $20,325 |
| 80 | 20.2 | $24,752 |
| 85 | 16.0 | $31,250 |
| 90 | 12.2 | $40,984 |
If your spouse is the sole beneficiary and more than 10 years younger, you use the Joint Life table instead, which gives a smaller RMD. Your account provider will usually calculate the figure for you.
For IRAs, you can add up the RMDs for all your traditional IRAs and take the total from any one or more of them. For 401(k)s, each plan’s RMD must come from that plan.
Deadlines and the first-year trap
You can delay your first RMD until April 1 of the following year, but then you must take two RMDs in that year: the delayed first one and the second one by December 31. That can push you into a higher tax bracket. Many people take the first one in the year they turn 73.
Penalty for missing an RMD
The penalty is 25% of the amount you should have withdrawn, reduced to 10% if you correct it within two years. File IRS Form 5329 and you may request a waiver if the shortfall was due to a reasonable error.
Ways to reduce the tax on RMDs
- Qualified charitable distribution (QCD): from age 70 1/2 you can give directly from an IRA to charity. It counts toward your RMD and is not taxable income. The annual limit is indexed for inflation.
- Roth conversions before RMD age reduce future RMDs, though you pay tax on the conversion.
- Plan withdrawals with your overall retirement income. See the 4% rule.
Related guides
Frequently asked questions
Can I take more than my RMD? Yes. The RMD is a minimum, but extra withdrawals do not count toward future years.
Can I reinvest my RMD? Not back into a tax-deferred account, but you can invest it in a regular brokerage account.
Are RMDs taxed? Yes, as ordinary income, except for any after-tax (basis) portion.
This article is general information, not tax or financial advice.