A Required Minimum Distribution is the minimum amount the IRS requires you to withdraw each year from your tax-deferred retirement accounts once you reach a certain age. RMDs apply to Traditional IRAs, 401(k)s, 403(b)s, SEP IRAs, SIMPLE IRAs, and most other employer-sponsored retirement plans. Roth IRAs are not subject to RMDs during the account owner's lifetime.

Under the SECURE 2.0 Act, the age at which RMDs begin depends on your birth year:

• Born 1950 or earlier: RMDs began at age 72
• Born 1951 through 1959: RMDs begin at age 73
• Born 1960 or later: RMDs begin at age 75 (effective 2033)

You must take your first RMD by April 1 of the year after you reach your RMD age. For all subsequent years, your RMD must be taken by December 31.

Your RMD is calculated by dividing your retirement account balance as of December 31 of the previous year by a life expectancy factor from the IRS Uniform Lifetime Table (found in IRS Publication 590-B). The life expectancy factor decreases as you age, which means the percentage of your account you must withdraw increases each year.

Example: If your account balance was $500,000 on December 31 and your life expectancy factor is 26.5 (age 73), your RMD would be $500,000 / 26.5 = $18,867.92.

If you fail to withdraw your full RMD by the deadline, the IRS imposes a 25% excise tax on the amount you should have withdrawn but did not. However, if you correct the shortfall within two years, the penalty is reduced to 10%. The IRS may also waive the penalty entirely if you can show the shortfall was due to a reasonable error and you are taking steps to fix it.

It depends on the account type. For IRAs, you must calculate the RMD for each account individually, but you have the flexibility to withdraw the total combined amount from any one or more of your IRAs. For 401(k)s and other employer plans, you must calculate and withdraw the RMD separately from each account.

Yes, you can always withdraw more than the required minimum. However, any amount above the RMD cannot be applied toward a future year's requirement. Each year's RMD must be calculated and satisfied independently.

RMDs from traditional tax-deferred accounts are taxed as ordinary income in the year you receive them. They are added to your other income and taxed at your applicable federal (and possibly state) income tax rate. This is why understanding your tax bracket is important when planning your withdrawal strategy.

If your spouse is your sole primary beneficiary and is more than 10 years younger than you, you may use the IRS Joint Life and Last Survivor Expectancy Table instead of the Uniform Lifetime Table. This table produces a larger life expectancy factor, which results in a smaller annual RMD. This calculator automatically applies the Joint Life Table when you indicate your spouse is your sole beneficiary and enter their date of birth. Our advisors can help you confirm which table applies to your situation and verify your custodian's calculation.

For IRAs, yes. You must take RMDs from your Traditional IRA regardless of whether you are still employed. For employer-sponsored plans like a 401(k), you may be able to delay RMDs from your current employer's plan until you actually retire, as long as you do not own more than 5% of the company. This exception does not apply to IRAs or plans from former employers.

Yes. If you are 70 1/2 or older, you can make a Qualified Charitable Distribution (QCD) directly from your IRA to a qualifying charity. A QCD can satisfy your RMD for the year (up to $111,000 per individual for 2026; the IRS adjusts this limit annually for inflation) and the distributed amount is excluded from your taxable income. This can be a powerful strategy for reducing your tax burden while supporting causes you care about.