Required Minimum Distributions (RMDs) force you to withdraw — and pay taxes on — money from tax-deferred retirement accounts starting at a certain age. Understanding the rules helps you plan distributions strategically and avoid expensive penalties.
RMD Age Requirements
| Birth Year | RMD Starting Age | First RMD Due By |
|---|---|---|
| 1950 or earlier | 72 | Already required |
| 1951-1959 | 73 | April 1 after turning 73 |
| 1960 or later | 75 | April 1 after turning 75 |
SECURE 2.0 Act (2022) pushed the RMD age from 72 to 73, and will increase it to 75 starting in 2033.
Which Accounts Require RMDs?
| Account Type | RMDs Required? | Starting Age |
|---|---|---|
| Traditional IRA | Yes | 73/75 |
| Traditional 401(k) | Yes | 73/75 (or retirement if later) |
| 403(b) | Yes | 73/75 (or retirement if later) |
| SEP IRA | Yes | 73/75 |
| SIMPLE IRA | Yes | 73/75 |
| Inherited IRA (non-spouse) | Yes | Years 1-10 (10-year rule) |
| Inherited IRA (spouse) | Yes | Can delay to deceased’s RMD age |
| Roth IRA (original owner) | No | Not required during lifetime |
| Roth 401(k) | No (starting 2024) | Eliminated by SECURE 2.0 |
| Roth IRA (inherited) | Yes | 10-year rule |
| HSA | No | Not required |
Key insight: Roth IRAs have no RMDs during the owner’s lifetime — one of their biggest advantages for long-term tax planning.
RMD Calculation Tables (Uniform Lifetime Table)
To calculate your RMD: Account balance (Dec. 31 of prior year) ÷ Life expectancy factor
| Age | Life Expectancy Factor | RMD as % of Balance |
|---|---|---|
| 73 | 26.5 | 3.77% |
| 74 | 25.5 | 3.92% |
| 75 | 24.6 | 4.07% |
| 76 | 23.7 | 4.22% |
| 77 | 22.9 | 4.37% |
| 78 | 22.0 | 4.55% |
| 79 | 21.1 | 4.74% |
| 80 | 20.2 | 4.95% |
| 81 | 19.4 | 5.15% |
| 82 | 18.5 | 5.41% |
| 83 | 17.7 | 5.65% |
| 84 | 16.8 | 5.95% |
| 85 | 16.0 | 6.25% |
| 86 | 15.2 | 6.58% |
| 87 | 14.4 | 6.94% |
| 88 | 13.7 | 7.30% |
| 89 | 12.9 | 7.75% |
| 90 | 12.2 | 8.20% |
| 91 | 11.5 | 8.70% |
| 92 | 10.8 | 9.26% |
| 93 | 10.1 | 9.90% |
| 94 | 9.5 | 10.53% |
| 95 | 8.9 | 11.24% |
RMD Calculation Examples
| Account Balance (Dec. 31) | Age | Factor | RMD Amount | Tax at 22% Bracket |
|---|---|---|---|---|
| $500,000 | 73 | 26.5 | $18,868 | $4,151 |
| $500,000 | 78 | 22.0 | $22,727 | $5,000 |
| $500,000 | 83 | 17.7 | $28,249 | $6,215 |
| $750,000 | 73 | 26.5 | $28,302 | $6,226 |
| $1,000,000 | 73 | 26.5 | $37,736 | $8,302 |
| $1,000,000 | 80 | 20.2 | $49,505 | $10,891 |
| $2,000,000 | 73 | 26.5 | $75,472 | $16,604 |
RMD Strategies to Minimize Taxes
1. Roth Conversions Before Age 73
Converting traditional IRA/401(k) money to a Roth IRA before RMDs start reduces future RMDs:
| Strategy | Example |
|---|---|
| Convert in low-income years (early retirement) | $50K/year conversions at 12-22% brackets |
| Convert up to the top of your current tax bracket | Fill the 22% or 24% bracket |
| Multi-year conversion strategy | Spread over 5-10 years before age 73 |
2. Qualified Charitable Distributions (QCDs)
| QCD Rule | Detail |
|---|---|
| Age requirement | 70½ or older |
| Annual limit | $105,000 per person (2024, indexed) |
| Satisfies RMD? | Yes |
| Taxable income? | No (excluded from income) |
| Must go directly to charity | Yes, from IRA custodian to charity |
QCDs are the most tax-efficient way for charitably-inclined retirees to satisfy RMDs. See the complete Qualified Charitable Distribution guide for annual limits, eligible accounts, and how to execute the transfer.
3. Still-Working Exception (401(k) Only)
If you’re still working at 73+, you can delay RMDs from your current employer’s 401(k) (not IRAs) until you actually retire. This doesn’t apply to:
- IRAs (always start at 73/75)
- Former employer 401(k)s
- You must not own 5%+ of the company
4. Aggregate IRA RMDs
If you have multiple IRAs, you can:
- Calculate each IRA’s RMD separately
- Withdraw the total from any one IRA (or combination)
- Strategically withdraw from the least-performing account
This does NOT apply to 401(k)s — each 401(k) RMD must come from that specific plan.
RMD Penalties
| Situation | Penalty |
|---|---|
| Failure to take full RMD | 25% of the shortfall |
| Corrected within 2 years | Reduced to 10% |
| Reasonable cause (file Form 5329) | Possible waiver |
Example Penalty
If your RMD is $30,000 and you withdraw only $10,000:
- Shortfall: $20,000
- Penalty: $5,000 (25%) or $2,000 (10% if corrected promptly)
- Plus you still must withdraw the remaining $20,000 and pay income tax on it
Inherited IRA RMD Rules (SECURE Act)
| Beneficiary Type | RMD Rule |
|---|---|
| Surviving spouse | Can treat as own, delay to deceased’s RMD age, or 10-year rule |
| Minor child | Annual RMDs until age 21, then 10-year rule |
| Disabled/chronically ill | Stretch over life expectancy |
| Person ≤10 years younger than deceased | Stretch over life expectancy |
| All other individuals | Must empty account within 10 years |
| Non-designated (estate, charity) | 5-year rule or continued deceased’s schedule |
The SECURE Act (2019) eliminated the lifetime stretch IRA for most non-spouse beneficiaries. See inherited IRA RMD rules for a full breakdown by beneficiary type, including the eligible designated beneficiary exceptions.
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