What is a required minimum distribution (RMD)?

An RMD is the minimum distribution the IRS requires from certain retirement accounts after the account owner reaches the applicable age. The rule generally applies to tax-deferred accounts, where contributions or earnings received favorable tax treatment before distribution. When an RMD is due, the account owner generally reports the taxable portion as ordinary income for that year.

The word minimum matters. An RMD sets a floor, not a spending instruction. An owner may choose to withdraw more than the required amount, but an extra withdrawal does not normally carry forward to cover a later year's RMD. The right way to use a withdrawal depends on cash-flow needs, taxes, charitable goals, and the rest of a household's financial plan.

RMD rules are a federal tax requirement, and account custodians may provide estimates or reminders. The owner remains responsible for confirming the applicable rules, the account balance used, and the amount withdrawn by the deadline. Complex circumstances, including inherited accounts and certain employer plans, can call for additional guidance.

Traditional IRAs, SEP IRAs, and SIMPLE IRAs generally require RMDs once the owner reaches the applicable RMD age. Many workplace plans, including 401(k), 403(b), and governmental 457(b) accounts, also follow RMD rules. The details can differ by plan type, employment status, and whether the account is inherited, so it is important to confirm the plan's distribution provisions.

Roth IRAs are different for the original owner. There is no lifetime RMD requirement for an original Roth IRA owner. Designated Roth accounts in employer plans also generally do not require lifetime RMDs while the employee is alive. Beneficiaries of Roth accounts may still face post-death distribution requirements, which are separate from the original owner's lifetime rules.

A former employee's workplace account is not always treated the same way as an account in the current employer's plan. Some employees who are still working may be able to delay RMDs from the current employer's plan until retirement, subject to plan terms and ownership rules. That exception does not generally apply to traditional IRAs.

The applicable RMD age depends on birth year. Under the SECURE 2.0 Act, people born from 1951 through 1959 generally begin RMDs at age 73. For people born in 1960 or later, the applicable age rises to 75. The age 75 rule begins for this group in 2033, rather than replacing the age 73 rule for everyone.

This transition makes birth year important. Someone born in 1960 turns 73 in 2033, but generally does not begin RMDs until age 75. People approaching the threshold may want to identify their first distribution year early, because the first-year deadline works differently from later annual deadlines.

Age is only one part of the analysis. A household can have several retirement accounts with different custodians, plan rules, beneficiaries, and tax characteristics. Building an inventory before the first RMD year may reduce the chance that an overlooked account creates a shortfall.

For most account owners, the calculation begins with the account balance on December 31 of the prior year. That prior-year-end balance is divided by the applicable distribution period, sometimes called a life expectancy factor, from the IRS Uniform Lifetime Table. The resulting amount is the RMD for the current year.

The factor changes with age. As the factor becomes smaller, the required withdrawal generally becomes a larger percentage of the account balance. A spouse who is more than 10 years younger and is the sole beneficiary can require use of a different IRS table. Beneficiaries and certain inherited accounts also use rules that may differ from an owner's lifetime calculation.

Custodian estimates can be useful, but they are not a substitute for checking the inputs. A calculation may need to account for a rollover, a year-end balance issue, an inherited account, or an account that has a different distribution rule. IRS Publication 590-B and the IRS RMD worksheets explain the tables and calculation process.

The first RMD is generally due by April 1 of the year after the year an owner reaches the applicable RMD age. That delayed first deadline is optional. Taking the first distribution in the year it is due may be simpler for some households, especially when receiving two taxable distributions in the following calendar year could affect their tax picture.

After the first distribution year, RMDs are generally due by December 31 every year. If an owner waits until the April 1 deadline to take the first RMD, that person generally must also take the second year's RMD by December 31 of the same calendar year. The two distributions can increase taxable income in one year.

A calendar reminder alone may not be enough. A distribution request can take time to process, and a distribution from one account does not automatically satisfy a requirement from every other account. Reviewing deadlines before year-end can leave time to correct administrative errors or confirm a calculation.

If an owner takes less than the required amount, the IRS can impose an excise tax on the shortfall. Under current rules, the excise tax is generally 25% of the amount not withdrawn. The tax may be reduced to 10% if the shortfall is corrected within the IRS correction window and the required reporting is completed.

The correction window generally ends on the earliest of the date the IRS mails a notice of deficiency, the date the tax is assessed, or the last day of the second tax year following the year in which the excise tax applies. Form 5329 is used to report additional taxes on qualified plans and may be part of a correction request. The IRS can waive the tax for reasonable error when the shortfall is corrected and an explanation is submitted.

The practical first step after discovering a missed RMD is usually to verify the amount, take the remaining distribution promptly, and consult a qualified tax professional about reporting and a possible waiver request. The facts and timing matter, so this is not an area for assumptions.

Owners with multiple traditional IRAs generally calculate an RMD for each IRA separately, then may take the total IRA amount from one IRA or from a combination of their IRAs. SEP and SIMPLE IRAs are generally included in that IRA aggregation. This flexibility can simplify administration, but it does not remove the need to calculate each account's required amount accurately.

Workplace plans are different. RMDs from 401(k), 403(b), and other employer plans generally must be calculated and withdrawn separately from each plan. An IRA withdrawal normally cannot satisfy a 401(k) RMD. Certain 403(b) accounts have special aggregation rules, which is another reason to confirm the account type before directing a distribution.

Where a withdrawal comes from can affect an overall plan, but every account decision has trade-offs. Liquidity, beneficiary designations, tax withholding, investment allocation, and the ability to make a qualified charitable distribution may all matter. A coordinated review may help identify questions before the deadline arrives.

A qualified charitable distribution, or QCD, is a direct transfer from an IRA to an eligible charity for an IRA owner age 70 1/2 or older. A qualifying QCD can count toward that year's RMD while generally being excluded from taxable income. The transfer must go directly from the IRA custodian to the charity, and the amount cannot also be claimed as a charitable deduction.

For charitably inclined households, a QCD may offer a way to meet part or all of an RMD without first recognizing that amount in adjusted gross income. The potential benefit depends on the household's tax return, giving goals, available IRA assets, and current law. Not every charity or charitable vehicle is eligible, so the recipient should be confirmed before the transfer is made.

Our qualified charitable distribution (QCD) guide explains the eligibility rules and current annual limits. A QCD is a charitable and tax-planning decision, not a default RMD instruction, and should be coordinated with the household's broader giving plan.

Some households examine Roth conversions in the years before RMDs begin. A conversion moves funds from a pre-tax retirement account to a Roth IRA and generally creates taxable income in the year of the conversion. Because an original Roth IRA owner does not have lifetime RMDs, a thoughtfully sized conversion may reduce the amount subject to future RMD rules.

That potential benefit comes with important trade-offs. A conversion can raise current taxable income and could affect tax brackets, Medicare-related income thresholds, or other parts of a financial plan. RMD amounts themselves generally cannot be converted to a Roth IRA. Whether a conversion makes sense depends on individual circumstances, tax law, and the source of funds used to pay the tax.

For a deeper discussion of the timing questions, see the Roth conversion strategy for pre-retirees article below. The article explains why the years between retirement and RMD age can be a planning window for some households, while emphasizing that a conversion is not automatically beneficial.

An RMD does not exist in isolation. It can interact with spending needs, other taxable income, charitable giving, Medicare premiums, and the sequence in which a household draws from its accounts. A required withdrawal may be spent, saved in a taxable account, given to charity through a QCD when eligible, or used for another purpose that fits the household's plan.

For retirees with concentrated accounts or several income sources, modeling distribution timing may clarify the trade-offs before they become mandatory. The goal is not to eliminate a required withdrawal or promise a particular tax result. It is to understand the rules and make deliberate choices within them.

For more on putting account withdrawals, Social Security, pensions, and taxes into one framework, see the retirement income planning article below. Reviewing the plan before the first RMD year may give a household more options than waiting until a distribution is due.

Start by confirming whether this is the first RMD year and identifying the applicable deadline. Gather the December 31 prior-year account balances, confirm beneficiaries, and identify whether any account uses a special table or inherited-account rule. Calculate the required amount for each account or obtain a custodian calculation and review its inputs.

Next, decide where distributions should come from and whether tax withholding or a QCD is relevant. Confirm the recipient and process for any charitable transfer before the year-end deadline. Keep records of calculations, distributions, and confirmations with tax documents. These steps can reduce administrative surprises, though they do not replace individualized tax or legal advice.

RMD rules are subject to change, and this guide summarizes current IRS guidance as of September 8, 2026. For the official rules and worksheets, visit the IRS required minimum distributions page and consult qualified professionals about your situation.