Required Minimum Distributions (RMDs) Explained: Rules, Ages, Taxes & Examples

Last reviewed: October 2026

You may spend decades saving for retirement without ever thinking about Required Minimum Distributions. Then, as retirement progresses, you discover that the government may actually require you to start taking money out of certain retirement accounts.

These withdrawals are known as Required Minimum Distributions, or RMDs.

RMD rules can sound intimidating, especially if you have never withdrawn money from a retirement account before. Fortunately, the basic idea is fairly straightforward. Understanding when RMDs start, how RMDs are calculated, which accounts require them, and how RMDs are taxed can help you prepare before your first withdrawal is due.

What Is a Required Minimum Distribution?

A Required Minimum Distribution (RMD) is the minimum amount you generally must withdraw each year from certain tax-deferred retirement accounts once you reach the applicable RMD age.

Many people spend years contributing to retirement accounts that provide tax advantages. Understanding how tax-advantaged accounts such as IRAs work can make RMD rules easier to understand.

With traditional retirement accounts, taxes on some or all of the money may have been deferred while you were saving. RMD rules eventually require distributions from those accounts, and those withdrawals are generally included in taxable income except for amounts that were previously taxed or otherwise qualify for tax-free treatment.

Quick RMD Facts

Here are a few basics to know:

• RMD stands for: Required Minimum Distribution.
• Current RMD starting age: Generally 73 for people who reach age 73 before 2033; the applicable age becomes 75 for certain younger individuals under SECURE 2.0.
• Common accounts subject to RMDs: Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, 457(b)s, and certain other retirement plans.
• Roth IRA RMDs: Original Roth IRA owners do not have lifetime RMDs.
• Roth 401(k) and Roth 403(b) RMDs: Designated Roth accounts are also exempt from lifetime RMDs for the owner under current law.
• Can you withdraw more than the RMD? Yes.

What Age Do RMDs Start?

One of the most common questions is “At what age do I have to take an RMD?”

Under current law, the applicable age is generally 73 for someone who reaches age 73 before January 1, 2033. SECURE 2.0 increases the applicable age to 75 for certain younger individuals in the future.

That makes your birth year important. Do not assume that the RMD age that applied to a parent or older relative will necessarily apply to you.

Traditional IRA owners generally must begin RMDs at the applicable age even if they continue working. Workplace retirement plans may allow certain participants to delay RMDs until retirement, although this exception generally does not apply to someone who owns more than 5% of the business sponsoring the plan.

Which Retirement Accounts Require RMDs?

RMD rules apply to many retirement accounts, including traditional IRAs, SEP and SIMPLE IRAs, 401(k) plans, 403(b) plans, and 457(b) plans.

Roth accounts work differently. Roth IRAs and designated Roth accounts in plans such as Roth 401(k)s and Roth 403(b)s do not require distributions while the original owner is alive under current rules. Beneficiaries can be subject to different requirements.

Your retirement investments may also change over time. For example, some retirement savers use target-date retirement funds to gradually adjust their investment mix as retirement approaches.

How to Calculate an RMD: A Simple Example

A common RMD calculation generally looks like this:

Previous December 31 account balance ÷ applicable IRS life-expectancy factor = RMD

The IRS publishes tables containing the applicable factors.

For example, the IRS Uniform Lifetime Table currently provides a factor of 26.5 at age 73 for people who use that table.

Suppose your traditional IRA was worth $530,000 on December 31 of the previous year.

Your calculation would be:

$530,000 ÷ 26.5 = $20,000

Your RMD for the year would therefore be $20,000.

Different circumstances can require a different IRS table. For example, a different calculation applies when your spouse is your sole beneficiary and is more than 10 years younger than you.

When Is Your First RMD Due?

Generally, your first RMD is for the year you reach your applicable RMD age, although you can delay taking that first distribution until April 1 of the following year.

Be careful with that option.

If you postpone the first withdrawal, your second RMD is generally still due by December 31 of that same following year. That means you could take two taxable RMDs in one calendar year.

For some retirees, taking two distributions in one year could significantly change taxable income, so delaying the first RMD should not automatically be considered the better choice.

Are RMDs Taxable?

Generally, distributions from traditional retirement accounts are included in taxable income, except for portions that were previously taxed or otherwise qualify for tax-free treatment.

For example, imagine you receive income from Social Security and a pension and then take a $20,000 RMD. That additional distribution becomes another factor in your tax situation.

RMD planning therefore should be considered alongside your broader tax strategy. Investors who also have taxable investment accounts may want to understand strategies such as tax-loss harvesting and how it works. Tax-loss harvesting does not simply cancel the ordinary income generated by an RMD, but understanding how different investments affect taxes can help with broader financial planning.

What Can You Do With RMD Money?

Taking an RMD does not mean you have to spend all of it.

After satisfying the distribution requirement and considering taxes, you might use the money for living expenses, build cash reserves, pay down debt, make charitable gifts, or reinvest money in a taxable investment account.

If you reinvest, consider whether your asset allocation strategy still reflects your goals and risk tolerance.

Retirement may also be a good time to review how your investments are diversified rather than concentrating too much money in one company, industry, or investment type.

And taking money out of a retirement account does not necessarily mean abandoning investing altogether. Depending on your circumstances, maintaining a long-term investing approach instead of focusing on short-term trading may still fit your broader financial goals.

What If You Have Multiple IRAs or Retirement Accounts?

This is an easy area to misunderstand.

If you own multiple IRAs, you generally calculate the RMD for each IRA separately. However, you can generally satisfy the combined IRA requirement by withdrawing the total amount from one or more of those IRAs.

Employer retirement plans are different. RMD requirements generally must be satisfied separately for each retirement plan.

What Happens If You Miss an RMD?

Missing an RMD can be expensive.

If you fail to withdraw the required amount by the deadline, the shortfall may be subject to a 25% excise tax. Under current rules, that can be reduced to 10% when corrected within the applicable correction period. The IRS may also waive the tax in certain cases involving reasonable error when appropriate corrective steps are taken.

If you discover a missed RMD, address it promptly rather than waiting until the following tax year.

Common RMD Mistakes to Avoid

Forgetting an old 401(k). Retirement accounts from former employers can easily be overlooked.

Waiting until December. Starting early gives you time to verify calculations and process withdrawals.

Assuming every account follows identical rules. IRA and employer-plan aggregation rules can differ.

Taking the wrong amount. Your financial institution may calculate an RMD, but the account owner is ultimately responsible for taking the correct amount.

Ignoring taxes. An RMD can affect your overall taxable income.

Taking extra and assuming it counts next year. Taking more than your required amount generally does not reduce the following year's RMD.

Bottom Line: Understand RMDs Before Retirement

Required Minimum Distributions become much easier to manage once you understand the basics: when RMDs start, how to calculate an RMD, which retirement accounts have RMDs, how RMDs are taxed, and what happens if you miss the deadline.

The biggest mistake may simply be waiting until the last minute to learn the rules.

As you approach your applicable RMD age, review every retirement account you own, understand the deadlines, estimate the potential tax impact, and decide how required withdrawals fit into your overall retirement strategy.

RMD and tax rules can change, and individual circumstances can alter how the rules apply. Before making significant retirement or tax decisions, consider confirming your requirements with your retirement plan administrator and a qualified tax or financial professional.

Frequently Asked Questions About RMDs

Do I Have to Take an RMD If I’m Still Working?

Traditional IRA owners generally do. Certain workplace-plan participants may be able to delay RMDs until retirement, subject to the applicable rules.

Can I Take My Entire RMD at Once?

Yes. You do not necessarily have to take it in monthly installments. You could take the required amount in one distribution as long as you satisfy the applicable deadline.

Can I Take My RMD Monthly?

Yes. You can generally take distributions throughout the year as long as the required total is distributed by the applicable deadline.

Can I Withdraw More Than My RMD?

Yes. An RMD is a minimum, not a maximum. However, withdrawing more than required generally does not reduce the RMD you will have to take in the following year.

Do Inherited IRAs Have RMDs?

They can. Inherited IRA RMD rules depend on factors including the beneficiary’s relationship to the original owner and when the owner died.

Many beneficiaries are subject to a 10-year distribution rule, although exceptions and additional requirements can apply. Because inherited IRA rules can become complicated, beneficiaries should verify the requirements that apply to their specific situation.