What Is a Required Minimum Distribution?
A required minimum distribution (RMD) is the minimum amount the IRS requires you to withdraw each year from your tax-deferred retirement accounts once you reach a certain age. The purpose is straightforward: the government allowed you to defer taxes on contributions and earnings for decades, and eventually it wants its share.
RMDs apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) plans, and other defined contribution plans. They do not apply to Roth IRAs during the original owner's lifetime (more on that below).
RMDs exist because tax-deferred retirement accounts are a tax deferral, not a tax exemption. The IRS eventually requires you to take distributions so that income taxes are paid on the money.
Who Must Take RMDs?
You must take annual RMDs if you own a traditional IRA, SEP IRA, SIMPLE IRA, or participate in an employer-sponsored retirement plan like a 401(k) or 403(b). The rules apply once you reach your required beginning date (RBD).
There are a few important exceptions:
- Roth IRA owners — Original Roth IRA owners are never required to take distributions during their lifetime. Inherited Roth IRAs are a different story.
- Still-working exception — If you are still employed at the company sponsoring your 401(k), own less than 5% of the company, and have not yet reached retirement, you may be able to delay RMDs from that specific plan until after you retire.
- Roth 401(k) — Under SECURE 2.0, Roth 401(k) accounts are no longer subject to RMDs starting in 2024.
When Do RMDs Start?
Your RMD start age depends on when you were born. The SECURE Act of 2019 and SECURE 2.0 Act of 2022 have changed this threshold multiple times:
| Birth Year | RMD Start Age | Governing Law |
|---|---|---|
| 1950 or earlier | 70½ or 72 (depending on exact birth date) | Pre-SECURE / Original SECURE Act |
| 1951 – 1959 | 73 | SECURE 2.0 Act of 2022 |
| 1960 or later | 75 | SECURE 2.0 Act of 2022 |
There is currently a conflict in the IRS guidance for individuals born in 1959. The statute appears to set their RMD age at 73, but proposed IRS regulations suggest it may be 75. This calculator and most practitioners currently use age 73 for the 1959 cohort until final guidance is issued.
Your Required Beginning Date (RBD) — the absolute latest you can take your first RMD — is April 1 of the year after you turn the applicable age. For example, if you were born in 1952 and turn 73 in 2025, your RBD is April 1, 2026.
How Is the RMD Amount Calculated?
Your RMD is calculated by dividing your account balance as of December 31 of the prior year by an IRS-prescribed life expectancy factor. The formula is simple:
RMD = Prior Year-End Balance ÷ IRS Life Expectancy Factor
The IRS publishes three life expectancy tables in Publication 590-B. The one that applies to you depends on your situation:
- Table III (Uniform Lifetime Table) — Used by virtually all original account owners. This is the most common table.
- Table II (Joint Life and Last Survivor) — Used only when the account owner's sole beneficiary is a spouse who is more than 10 years younger. Produces a lower RMD.
- Table I (Single Life Expectancy) — Used primarily by inherited IRA beneficiaries taking annual life expectancy distributions.
All three tables were updated in 2022 to reflect longer life expectancies, resulting in slightly smaller RMDs than under the prior tables (which had not been updated since 2002).
Calculate Your Exact RMD
Enter your birth year and prior year-end balance to get your 2026 RMD amount, life expectancy factor, and a 25-year projection table.
Open the Free RMD Calculator →RMD Deadlines and the First-Year Double-Up Risk
For most years, your RMD must be taken by December 31 of the distribution year. However, there is an important exception for your very first RMD: you may delay it until April 1 of the following year.
This sounds like a benefit, but it comes with a significant catch: if you delay your first RMD to April 1 of year two, you still must take your year-two RMD by December 31 of that same year. The result is two full RMDs in one tax year, which can:
- Push you into a higher federal income tax bracket
- Trigger Medicare IRMAA surcharges (which are assessed two years later)
- Cause more of your Social Security benefit to become taxable
For this reason, most tax advisors recommend taking your first RMD in the year it is due rather than delaying, unless there is a compelling tax reason to do so.
Do Roth Accounts Have RMDs?
Original Roth IRA owners are not subject to RMDs during their lifetime. This is one of the most powerful features of Roth accounts — your money can grow tax-free indefinitely without ever being forced out.
Under SECURE 2.0, Roth 401(k) and Roth 403(b) accounts also became exempt from RMDs starting in 2024, bringing them in line with Roth IRA treatment.
However, inherited Roth IRAs are not exempt. When a beneficiary inherits a Roth IRA, they become subject to the same distribution rules as traditional inherited IRAs — the 10-year rule, stretch IRA rules (if pre-2020), or Eligible Designated Beneficiary rules. The key difference is that qualified distributions from inherited Roth IRAs are generally income tax-free.
What About Inherited IRAs?
When you inherit an IRA, the RMD rules change significantly based on your relationship to the original owner, when you inherited the account, and whether the original owner had already started taking RMDs.
The SECURE Act of 2019 fundamentally changed inherited IRA rules for most non-spouse beneficiaries who inherited after December 31, 2019, replacing the "stretch IRA" with a 10-year rule. SECURE 2.0 further modified how that 10-year rule works depending on whether the original owner had started RMDs before death.
What Happens If You Miss an RMD?
Missing an RMD — or taking less than the required amount — triggers an IRS excise tax. Under SECURE 2.0, the penalty was reduced from 50% to 25% of the shortfall (the amount you should have taken but did not). The penalty is further reducible to 10% if you take the missed distribution and file a correction within the two-year correction window.
To report and pay the excise tax, you file IRS Form 5329 with your tax return. The IRS has historically been willing to waive the penalty for first-time errors with reasonable cause, but this is not guaranteed and requires a specific request.