What Are Required Minimum Distributions and When Do They Start?

Required minimum distributions, or RMDs, are the minimum amounts many retirement account owners must withdraw each year once they reach the IRS starting age. For most current retirees, that starting age is 73. RMDs commonly apply to traditional IRAs and many workplace plans, but Roth IRAs and designated Roth plan accounts generally do not have lifetime RMDs for the original owner. (irs.gov)

 

What Is a Required Minimum Distribution?

A required minimum distribution is the minimum amount you must withdraw each year from certain retirement accounts once the rules apply to you. You can always take more than the minimum, but taking extra does not count toward future years’ RMDs. (irs.gov)

 

Which Accounts Have RMDs?

RMD rules generally apply to:

• Traditional IRAs
• SEP IRAs
• SIMPLE IRAs
• 401(k) plans
• 403(b) plans
• 457(b) plans
• Other defined contribution plans (irs.gov)

For the original owner, Roth IRAs do not have lifetime RMDs, and IRS guidance also says designated Roth accounts in a 401(k) or 403(b) do not require withdrawals while the owner is alive. (irs.gov)

 

When Do RMDs Start?

For IRAs, your first RMD is generally due by April 1 of the year after the calendar year you reach age 73. For 401(k), 403(b), and similar plans, the first RMD is generally due by April 1 of the year after the later of:

1. The year you reach 73
2. The year you retire, if the plan allows that delay (irs.gov)

Should You Wait Until April 1 for Your First RMD?

Usually, that depends on your tax picture and overall financial needs.

 

If you wait until April 1 for your first RMD, you will often have to take:

• Your first RMD by April 1
• Your second RMD by December 31 of that same year (irs.gov)

That can create two taxable distributions in one calendar year, which may increase:

• Taxable income
• Medicare premium exposure
• Taxation of Social Security
• Phaseouts tied to income

That last list is a planning inference based on the fact that RMDs are generally included in taxable income. (irs.gov)

 

How Is an RMD Calculated?

For your own IRA, the IRS says the RMD is generally calculated by dividing:

• Your account balance as of December 31 of the prior year
• By the applicable distribution period from the IRS life expectancy tables (irs.gov)

Most account owners use the Uniform Lifetime Table. If your spouse is your sole beneficiary and is more than 10 years younger than you, you generally use the Joint Life and Last Survivor Expectancy Table instead. (irs.gov)

 

Can You Take More Than the RMD?

Yes. You can always withdraw more than the required minimum. But extra withdrawals do not reduce next year’s RMD. (irs.gov)

 

If You Have Multiple IRAs, Can You Take the Total From One Account?

Yes, for IRAs.

 

The IRS says you must calculate the RMD for each IRA separately, but you can then aggregate those IRA RMDs and take the total from one IRA or from several IRAs combined. (irs.gov)

 

That is different from most employer plans. If you have multiple 401(k)-type plans, you generally must satisfy each plan’s RMD from that specific plan. One exception the IRS notes is that multiple 403(b) account RMDs can be totaled and taken from one or more 403(b) accounts. (irs.gov)

 

Are RMDs Taxable?

Usually, yes.

 

The IRS says withdrawals are generally included in taxable income, except for amounts that were already taxed or can be received tax-free. (irs.gov)

In plain English:

• Traditional IRA and pre-tax 401(k) RMDs are usually taxable
• Basis can change the taxable amount in some cases
• Roth IRA owner distributions are not subject to lifetime RMD rules in the first place (irs.gov)

What Happens If You Miss an RMD?

Missing an RMD can be expensive.

The IRS says the shortfall may be subject to a 25% excise tax, reduced to 10% if corrected within 2 years. The tax is generally reported on Form 5329. (irs.gov)

 

Can a Qualified Charitable Distribution Count Toward Your RMD?

Yes, in many cases.

 

IRS guidance says a qualified charitable distribution, or QCD, counts toward your RMD. A QCD generally must be made directly from an eligible IRA to a qualified charity, and the rules do not apply the same way to every account type. (irs.gov)

 

For charitably inclined retirees, this can be one of the most helpful RMD planning tools because it can satisfy part or all of the RMD without increasing taxable income the same way a normal IRA withdrawal would. That final benefit is an inference based on IRS guidance that qualifying QCD amounts can be excluded from income, subject to the applicable rules. (irs.gov)

 

What Is a Good RMD Example?

Here is a simple example.

1. Your IRA was worth $100,000 on December 31 of last year
2. You turn 75 this year
3. IRS Publication 590-B shows an example denominator of 24.6 for age 75 under the standard table
4. Your RMD would be $4,065 (irs.gov)

That example comes directly from the IRS’s current Publication 590-B illustrations. (irs.gov)

 

Do RMDs Apply to Inherited IRAs?

Yes, but inherited IRA rules are more complicated.

The IRS says beneficiary RMD timing depends on factors such as:

• Whether the beneficiary is a spouse
• Whether the beneficiary is an eligible designated beneficiary
• Whether the owner died before or after the required beginning date
• Whether the 10-year rule applies (irs.gov)

For many non-spouse beneficiaries who are not eligible designated beneficiaries, the inherited IRA generally must be fully distributed by the end of the 10th year after death. (irs.gov)

 

What Is the 10-Year Rule for Inherited IRAs?

The IRS describes the 10-year rule as requiring the beneficiary to withdraw the entire balance by December 31 of the year containing the 10th anniversary of the owner’s death. For example, if the owner died in 2025, the account would generally need to be fully distributed by December 31, 2035. (irs.gov)

 

A surviving spouse has more flexibility than many other beneficiaries and may have options such as treating the IRA as their own, depending on the facts. (irs.gov)

 

Are RMD Rules the Same for Spouses and Non-Spouse Beneficiaries?

No. Spouses often have more favorable options, including in some cases:

• Treating the inherited IRA as their own
• Using life expectancy methods
• Delaying distributions under special spouse rules (irs.gov)

Non-spouse beneficiaries often face tighter distribution timelines, especially under the 10-year rule. (irs.gov)

 

Why Do RMDs Matter in Financial Planning?

RMDs matter because they can affect more than just withdrawals.

 

They often influence:

• Tax bracket management
• Roth conversion timing
• Charitable giving strategy
• Cash-flow planning in retirement
• Legacy planning for beneficiaries (irs.gov)

For many retirees, the real planning opportunity is not just taking the RMD on time. It is deciding how to reduce future RMD pressure before it starts by planning ahead.

 

How Can You Plan Ahead for RMDs?

Common planning steps include:

1. Estimating future IRA and 401(k) balances
2. Projecting likely RMDs at age 73 and beyond
3. Reviewing Roth conversions before RMD age
4. Using QCDs if charitable giving is part of the plan
5. Coordinating RMDs with Social Security, Medicare, and taxable portfolio withdrawals

Some of these steps are planning recommendations rather than IRS rules, but they are grounded in the tax and timing rules the IRS sets for RMDs. (irs.gov)

 

What Are the Most Common RMD Mistakes?

The most common mistakes usually include:

• Missing the first-year deadline
• Forgetting that delaying the first RMD can create two RMDs in one year
• Assuming all accounts can be aggregated the same way
• Missing a beneficiary rule on an inherited IRA
• Forgetting that failing to take the full amount can trigger an excise tax (irs.gov)

Frequently Asked Questions About Required Minimum Distributions

At what age do RMDs start?

For most current account owners, RMDs generally begin at age 73. For an IRA, the first one is generally due by April 1 of the year after the year you turn 73. (irs.gov)

 

Do Roth IRAs have RMDs?

Not for the original owner during life. IRS guidance says Roth IRAs and designated Roth accounts generally do not require lifetime withdrawals while the owner is alive, though beneficiaries can still be subject to distribution rules. (irs.gov)

 

Can I take my IRA RMD from one account?

Yes, if you have multiple IRAs, you generally calculate each IRA’s RMD separately and then can aggregate the total and withdraw it from one IRA or several IRAs. (irs.gov)

 

What if I miss my RMD?

You may owe a 25% excise tax on the shortfall, potentially reduced to 10% if corrected within 2 years. The IRS also points taxpayers to Form 5329 for reporting. (irs.gov)

 

Final Answer: What Should Retirees Know About RMDs?

RMDs are mandatory retirement account withdrawals that usually begin at age 73 and can create real tax consequences if handled poorly. The key planning issues are when they start, how they are calculated, which accounts can be aggregated, and whether strategies like Roth conversions or QCDs can make retirement income more tax-efficient over time. (irs.gov)