The government gave you a tax break when you put money into your traditional IRA or 401(k). Required Minimum Distributions are how it collects. Starting at age 73 or 75 depending on when you were born, the IRS requires you to withdraw a calculated amount from your tax-deferred retirement accounts every year. Miss the deadline or withdraw too little and you owe a 25% penalty on the shortfall. This guide covers the age thresholds, the math, the aggregation rules that trip people up, and a strategy that can turn your RMD into a tax-free charitable gift.
Delaying your first RMD to the April 1 extended deadline forces two RMDs into the same calendar year -- doubling your taxable income from required distributions. This can push you into a higher bracket, increase Social Security taxation, and trigger Medicare IRMAA surcharges. In most cases, taking your first RMD in the year you reach the applicable age is the better choice.
Traditional IRAs and 401(k)s are tax-deferred, not tax-exempt. You avoided income tax when you contributed, and the earnings grew without being taxed along the way. Without RMDs, you could theoretically let that money grow untaxed for your entire life and pass the balance to heirs with decades of untaxed compounding.
Congress decided that was too generous. IRC Section 401(a)(9) requires that distributions from qualified retirement plans and IRAs begin by a specified age and continue annually over the account owner's life expectancy. The mechanism is simple: each year, the IRS tells you the minimum amount you must withdraw based on your account balance and your age. That withdrawal is taxable as ordinary income.
When RMDs Begin: The Age Thresholds
The SECURE 2.0 Act, signed into law in December 2022, changed the RMD starting age twice. Your starting age depends entirely on when you were born:
- Born 1950 or earlier: RMDs began at age 72 (or 70 1/2 for those born before July 1, 1949)
- Born 1951 through 1959: RMDs begin at age 73
- Born 1960 or later: RMDs begin at age 75
Technical detail
If you were born in 1955, for example, you turn 73 in 2028, and that is the year your first RMD comes due. If you were born in 1962, you turn 75 in 2037, and that is when your RMDs start.
The First-Year Deadline Trap
Your first RMD has a special extended deadline: April 1 of the year after you reach your RMD age. Every subsequent RMD is due by December 31 of that year. The extended first-year deadline sounds like a favor. It is usually a trap.
If you delay your first RMD to the following April 1, you will owe two RMDs in the same calendar year: the delayed first one (due April 1) and the regular second one (due December 31). Doubling up can push you into a higher tax bracket, increase the taxable portion of your Social Security benefits, and trigger Medicare IRMAA surcharges. Technical detail
Example. Margaret was born in 1955 and turns 73 in 2028. Her traditional IRA balance on December 31, 2027 is $600,000. Her first RMD (for 2028) is $22,642. She can take it anytime during 2028, or she can delay it until April 1, 2029. If she delays, she must also take her 2029 RMD by December 31, 2029. That means roughly $45,000 in RMD income in a single year instead of $22,642 spread across two.
In most cases, taking your first RMD in the year you turn the applicable age -- not the following April -- is the better choice.
How to Calculate Your RMD
The formula is straightforward:
RMD = Account balance as of December 31 of the prior year / Distribution period from the IRS Uniform Lifetime Table
The Uniform Lifetime Table (Table III in IRS Publication 590-B) assigns a distribution period based on your age. Here are the factors for common RMD ages:
| Age | Distribution Period | Approximate % of Balance |
|---|---|---|
| 73 | 26.5 | 3.77% |
| 74 | 25.5 | 3.92% |
| 75 | 24.6 | 4.07% |
| 76 | 23.7 | 4.22% |
| 77 | 22.9 | 4.37% |
| 78 | 22.0 | 4.55% |
| 79 | 21.1 | 4.74% |
| 80 | 20.2 | 4.95% |
| 85 | 16.0 | 6.25% |
| 90 | 12.2 | 8.20% |
Technical detail
Example. David is 75. His traditional IRA balance on December 31 of the prior year was $500,000. His RMD is $500,000 / 24.6 = $20,325. He can withdraw more if he wants, but he must withdraw at least $20,325 or face the penalty.
Spouse more than 10 years younger? If your sole beneficiary is a spouse who is more than 10 years younger than you, you use the Joint Life and Last Survivor Expectancy Table (Table II) instead of the Uniform Lifetime Table. This produces a larger divisor and a smaller required withdrawal. IRS Publication 590-B, Table II.
- First RMD ($22,642) taken by April 1 of year 2
- Second RMD (~$22,000) also due by December 31 of year 2
- ~$45,000 in RMD income in a single calendar year
- May push into a higher bracket and trigger IRMAA surcharges
- $22,642 RMD taken by December 31 of year 1
- ~$22,000 RMD taken by December 31 of year 2
- Income spread evenly across two years
- Stays in current bracket both years
Subject to RMDs:
- Traditional IRAs, SEP IRAs, SIMPLE IRAs
- 401(k), 403(b), 457(b) plans
- Other tax-deferred employer-sponsored plans
Not subject to lifetime RMDs:
- Roth IRAs -- no RMDs during the original owner's lifetime. Roth IRAs have never required lifetime distributions, which is one reason they are such a powerful estate planning tool. (However, beneficiaries who inherit a Roth IRA do have distribution requirements -- see our guide on inherited IRA rules.)
- Roth 401(k)s -- starting in 2024, Roth designated accounts in employer plans are no longer subject to lifetime RMDs.
Technical detail
SECURE 2.0 Act, Section 325. Before 2024, Roth 401(k) holders either had to take RMDs or roll the balance into a Roth IRA to avoid them.
If you have multiple retirement accounts, the aggregation rules determine whether you can take the total RMD from a single account or must withdraw from each one separately.
Traditional IRAs: Can aggregate. If you have three traditional IRAs, you calculate the RMD for each account separately, then add them up and take the total from any one IRA or any combination of your IRAs. The same rule applies to 403(b) accounts: calculate separately, withdraw from any one or combination.
401(k) plans: Cannot aggregate. Each employer plan's RMD must come from that specific plan. If you have a 401(k) from a previous employer and another from a different employer, you must take each plan's RMD from that plan.
Cannot cross account types. You cannot satisfy an IRA RMD with a 401(k) withdrawal or vice versa. An IRA RMD must come from an IRA. A 401(k) RMD must come from a 401(k).
IRS Publication 590-B; IRS RMD Comparison Chart (IRAs vs. Defined Contribution Plans).
This is a common source of errors. Someone with two traditional IRAs and an old 401(k) who takes the full combined RMD from one IRA has satisfied the IRA requirement but has completely missed the 401(k) RMD, and the 401(k) shortfall is subject to the penalty.
The Penalty for Missing an RMD
If you fail to withdraw the full RMD amount by the deadline, the IRS imposes an excise tax on the shortfall:
- 25% of the amount not withdrawn -- this is the standard penalty, reduced from the previous 50% by the SECURE 2.0 Act
- 10% if corrected within the correction window -- if you take the missed distribution and file the corrected paperwork within two years, the penalty drops to 10%
Technical detail
Example. Your RMD for the year was $20,000, but you only withdrew $12,000. The shortfall is $8,000. The standard penalty is $2,000 (25% of $8,000). If you withdraw the missing $8,000 and file a corrected Form 5329 within two years, the penalty drops to $800 (10% of $8,000).
The IRS can also waive the penalty entirely if you demonstrate that the shortfall was due to reasonable error and you have taken steps to remedy it. But "I forgot" is not a strong argument. Setting up automatic RMD distributions through your custodian is the simplest way to avoid this problem.
The Still-Working Exception
There is one important exception to the age-based RMD rules for employer-sponsored plans: if you are still working at the company that sponsors your 401(k) or 403(b) and you do not own more than 5% of the business, you can delay RMDs from that specific plan until the year you actually retire. IRC Section 401(a)(9)(C); IRS Retirement Plan and IRA RMD FAQs.
Key limitations:
- Applies only to your current employer's plan -- not to IRAs and not to plans from previous employers
- Does not apply to 5% or greater owners -- if you own more than 5% of the company sponsoring the plan, you cannot use this exception
- Does not apply to traditional IRAs -- IRA RMDs are based solely on age and account balance, regardless of employment status
A practical move for someone planning to work past their RMD age: consider rolling old 401(k)s from previous employers into your current employer's plan (if the plan accepts rollovers). That consolidation brings those assets under the still-working exception.
Inherited IRAs: Different Rules Apply
When you inherit an IRA from someone other than a spouse, you face a different set of distribution rules that changed significantly under the SECURE Act and SECURE 2.0. Most non-spouse beneficiaries who inherited after 2019 must empty the account within 10 years, and depending on whether the original owner had already started RMDs, annual distributions may also be required during that 10-year window.
Surviving spouses have additional options, including rolling the inherited IRA into their own IRA and resetting the RMD clock entirely.
The inherited IRA rules are complex enough to warrant their own guide. See Inherited an IRA? The 5 Different Rule Sets and Which One Applies to You for the complete breakdown.
If you plan to work past your RMD age, consider rolling old 401(k)s from previous employers into your current employer's plan. The still-working exception delays RMDs only from your current employer's plan -- not from IRAs or old 401(k)s. Consolidating brings those assets under the exception and defers mandatory distributions until you actually retire.
A Qualified Charitable Distribution (QCD) is a direct transfer from your IRA to a qualified charity. The distribution counts toward your RMD for the year but is excluded from your taxable income. For charitably inclined retirees, this is one of the most efficient tax strategies available.
The numbers for 2026:
- Maximum QCD: $111,000 per individual ($222,000 for a married couple filing jointly, if both spouses have IRAs)
- Age requirement: You must be at least 70 1/2 at the time of the distribution -- notably, this is younger than the RMD starting age, so you can make QCDs before RMDs even begin
- Must go directly to the charity -- you cannot withdraw the money and then write a check. The distribution must be paid directly from your IRA custodian to the qualified 501(c)(3) organization
Technical detail
Why a QCD beats a regular donation. Consider a retiree who takes a $25,000 RMD, pays tax on it as ordinary income, then donates $25,000 to charity and claims a charitable deduction. If they use the standard deduction (as most retirees do), they get no tax benefit from the donation at all. With a QCD, the $25,000 goes directly to charity, satisfies the RMD, and never appears as taxable income. The tax savings depend on your bracket, but at 22%, that is $5,500 kept in your pocket.
A QCD also reduces your adjusted gross income, which can lower your Social Security taxation, reduce IRMAA surcharges, and keep you in a lower tax bracket.
What does not qualify. QCDs cannot be made to donor-advised funds, private foundations, or supporting organizations. They can only be made from IRAs -- not from 401(k)s, 403(b)s, or other employer plans (roll the employer plan into an IRA first if you want to use this strategy).
Because Roth IRAs are not subject to lifetime RMDs, every dollar you convert from a traditional IRA to a Roth IRA before RMDs begin is a dollar that will never generate a mandatory taxable distribution. The "gap years" between retirement and RMD age are the most tax-efficient window for conversions, when your income is often at its lowest. For a detailed walkthrough of the strategy and the math, see Roth Conversions Explained.
Even after RMDs begin, you can still do Roth conversions -- but you must take your full RMD for the year first. The RMD itself cannot be converted.